Star Brewery Lease Agree with Historic Star Redevelopment
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MEMORANDUM
March 2, 2005
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TO:
The Honorable Mayor and City Council Members
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FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Second Amendment to Lease Agreement with Historical Star
Redevelopment L.L.C. for the Star Brewery Building
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 Phase 1 rehabilitation of the Star Brewery building. The
preliminary construction work, including environmental remediation, gutting the interior,
complete tuckpointing of the exterior, interior sandblasting, removal of the red tin
addition, structural repairs and new roof, has been completed. City funds expended to
date have been completely committed to necessary building restoration.
Acting Economic Development Director Pam Myhre recommends City Council approval
of a second amendment to the Lease Agreement with Historical Star Redevelopment to
extend the original lease for a five month period.
The proposed lease amendment extends the lease for five (5) months with the
understanding that the City would begin a process to issue a new Request for
Proposals after 60 days should the developer not perform in securing tenants and
finalizing the Development Agreement and long term lease.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mich'ael C. Van Milligen
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Pamela Myhre, Acting Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 1, 2005
TO:
Michael Van Milligen, City Manager
FROM:
Pamela Myhre, Acting Economic D
SUBJECT: Second Amendment to Lease Agreement with Historical Star
Redevelopment L.L.C. for the Star Brewery Building
INTRODUCTION
This memorandum presents for City Council review and approval a Resolution
authorizing a second amendment to the Lease Agreement with Historical Star
Redevelopment L.L.C. to extend the original lease for a five (5) month period.
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 Phase 1 rehabilitation of the Star Brewery building. The
preliminary construction work, including environmental remediation, gutting the interior,
complete tuckpointing of the exterior, interior sandblasting, removal of the red tin
addition, structural repairs and new roof, has been completed. City funds expended to
date have been completely committed to necessary building restoration.
The developer and City have been working on a Development Agreement and long
term lease for the property; however, the project is contingent on the developer
securing tenants for the property. Both the developer and their local leasing agent,
Prudential Friedman Realty, have not been able to finalize negotiations with any tenant
although there have been several parties interested in taking a substantial portion of the
leaseable area for restaurant/pub operations.
The proposed lease amendment extends the lease for five (5) months with the
understanding that the City would begin a process to issue a new Request for
Proposals during that time should the developer not perform in securing tenants and
finalizing the Development Agreement and long term lease. The Alexander Company
has asked that the City not proceed with a new Request for Proposals during the first
60 days of the extended lease period.
RECOMMENDATION
I recommend the City Council approve the second amendment to the Lease Agreement
between the City of Dubuque and Historical Star Redevelopment L.L.C. to allow
additional time for the developer to secure tenants for the project. I would also suggest
that the City allow a 60-day period before initiating the solicitation of another
developer/tenant for the project.
ACTION STEP
The action step for the City Council is to adopt the attached Resolution.
attachments
F:\USERS'I'myhre\WPDOCS\LOANDOClAlexander\2ndamendment.mem.doc
RESOLUTION NO. 70-05
AUTHORIZING THE EXECUTION OF A SECOND 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 L.L.C.
(Developer) for the Star Brewery Building; and
Whereas, the Lease Agreement provides that the term of the Lease Agreement is
for twelve (12) months or such longer or shorter term as the parties may agree in writing;
and
Whereas, the parties desire to extend the original term of the Lease Agreement for
an additional period of five (5) months; and
Whereas, a Second Amendment to Lease Agreement, hereto attached and by this
reference made a part hereof, sets forth the terms and conditions of the Lease extension.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the Second Amendment to Lease Agreement by and between the City
of Dubuque and Historical Star Redevelopment L.L.C., attached hereto, is hereby
approved.
Section 2. That the Mayor and City Clerk are hereby authorized and directed to
execute, on behalf10f the City of Dubuque, Iowa, the Second Amendment to Lease
Agreement.
Passed, approved and adopted this 7th day of March 2005.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider
City Clerk
F:\USERS\Pmyhre\WPDOCS\LOANDOC\Alexander\2ndamendment.res.doc
SECOND AMENDMENT
TO
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
HISTORICAL STAR REDEVELOPMENT L.L.C.
THIS SECOND AMENDMENT TO LEASE AGREEMENT (Second Amendment)
dated for reference purposes this _ day of , 2005, by and
between the CITY OF DUBUQUE, IOWA (Lessor) and HISTORICAL STAR
REDEVELOPMENT L.L.C. (Lessee).
WHEREAS, Lessor and Lessee are parties to a 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 term of the Lease Agreement is for twelve (12) months or such
longer or shorter term as the parties may agree in writing; and
WHEREAS, the parties desire to extend the original term of the Lease Agreement
for an additional period of five (5) months.
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. The term of the Lease Agreement is hereby extended to and including the
16th day of August 2005.
2. 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 Second
Amendment to Lease Agreement to be executed by their respective duly
authorized officers or representatives as of the date and year first above
writte n.
CITY OF DUBUQUE, IOWA
HISTORICAL STAR
REDEVELOPMENT
L.L.C.
by:
Terrance M. Duggan, Mayor
by:
Randall P. Alexander,
Managing Member
Attest:
Jeanne F. Schneider, City Clerk