IDOT_Right-of-Way Lease Agreement, Historic Millwork DistrictMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Use of Iowa Department of Transportation Right -of -Way
DATE: October 31, 2011
Dubuque
kettil
`AN- AmedcaCity
1
2007
Economic Development Director Dave Heiar recommends City Council approval of a
lease with the Iowa Department of Transportation for use of the right -of -way east of Elm
Street for a surface parking lot to facilitate the increased parking needs in the Historic
Millwork District. The lease would allow the City to convert this green space into a
surface parking lot. Since the Iowa Department of Transportation will not be
responsible for maintenance of this area, the lease is considered a "mutual benefit" and
no money will exchange hands for the use of this property.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Use of IDOT Right -of -Way
DATE: October 31, 2011
Dubuque
Intel
All- unedcacny
2007
PURPOSE
To present for Council consideration a mutually beneficial lease of IDOT right -of -way to
accommodate parking in the Historic Millwork District.
BACKGROUND
Redevelopment of the Historic Millwork District has been identified as a top priority of
the City Council. Most of the infrastructure upgrades, funded by $5.6 million of Tiger II
monies, will be completed by the end of this calendar year. Rehabilitation on the $28
million Caradco project has also begun, with completion of 72 residential units
anticipated in July of 2012. Other property owners (Johnson and McNamara) are also
anticipating major rehabilitation projects in the next few years. These developments will
create a need for over 500 parking spaces.
DISCUSSION
In an effort to accommodate this anticipated need, City staff has been in discussions
and negotiations with IDOT staff, about the use of right -of -way east of Elm Street, for
surface parking to facilitate the increased parking needs of this redeveloping area.
Attached is the Commercial Lease (including a map) prepared by the IDOT and
reviewed by the City's Legal Department. The lease would allow the City to convert this
green space into a surface parking lot. Since the DOT will not be responsible for
maintenance of this area, the lease is considered a "mutual benefit" and no money will
exchange hands for the use of this property.
RECOMMENDATION /ACTION STEP
I recommend that the City Council authorize the Mayor to sign the attached lease with
IDOT for mutually beneficial use of right -of -way located east of Elm Street.
Attachment
F: \USERS \Econ Dev \Warehouse District \Parking\20111031_Use of IDOT ROW -Memo Council.doc
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Iowa Department of Transportation
800 Lincoln Way, Ames, IA 50010 -6993 Phone: 515- 239 -1757
FAX: 515- 239 -1247
October 13, 2011
City of Dubuque
50 West 13th St.
Dubuque, IA 52001
To Whom It May Concern:
When corresponding, refer to:
Dubuque County
Project F -61- 8(22)- -20 -31
Parcel No. 243, 252R, 254, 293
Enclosed for your consideration is the proposed Commercial Lease between the Iowa Department of
Transportation and you.
If the terms and conditions of the lease are satisfactory, please sign and date the lease before a Notary
Public. Also please affix your City /County Seal.
Return your lease to this office in the envelope provided. Upon receiving approval, we will record the
lease and return a copy to you for your files.
Also, per lease terms, we require proof of liability insurance on the leased premises. We need this proof of insurance now at the start of this
lease and also each time your insurance is renewed. Please have your insurance carrier include the Iowa Department of Transportation as an
additional insured party and have them reference the leased premises. If you would also direct your insurance company to mail us your
insurance papers (certificate) each time your insurance is renewed, it would facilitate easier, straightforward recording of your current liability
insurance. Please provide the following specific mailing address to your insurance carrier, so you are assured we receive the papers directly:
Iowa Dept of Transportation
Right of Way - Property Mgt Leases
800 Lincoln Way
Ames, IA 50010
If you have any questions, please feel free to call me at the phone number in the heading above.
Thank you for your interest in our property management program.
Sincerely,
COL 6`- S
LA, Allyssa Sweeney
Lease Coordinator
Property Management
Enc.
c: J. Thomas Lind, Property Manager, Iowa DOT
i7 /ir L/5
(Iowa Department of Transportation
800 Lincoln Way, Ames, IA 50010 -6993 Phone: 515- 239 -1191
FAX: 515- 239 -1247
January 9, 2012
City of Dubuque
50 West 13th St.
Dubuque, IA 52001
Dear Mayor Buol:
When corresponding, refer to:
Dubuque County
Project F -61- 8(22) -20 -31
Parcel No. multi
Lease No. 31 -276 -2
I enclose for your records a copy of your approved Commercial Lease that has been recorded in the
county courthouse.
Also, per lease terms, we require proof of liability insurance on the leased premises. We need this proof
of insurance now at the start of this lease, and each time your insurance is renewed. Please have your
insurance carrier include the Iowa Department of Transportation as an additional insured party and have
them reference the leased premises. If you would also direct your insurance company to mail us your
certificate of insurance each time your policy is renewed, it will make this verification process
straightforward for all parties. Please provide the following address to your insurance carrier, so you may
be assured we receive the papers directly:
Iowa Dept of Transportation
Right of Way - Property Mgt Leases
800 Lincoln Way
Ames, IA 50010
If you have questions at any time, please feel free to give me a call at the phone number in the heading
above.
We thank you for your participation in our property management program.
Enc.
c: Tom Lind, Property Manager, Iowa DOT
Sincerely,
Allyssa Sweeney
Lease Coordinator
Property Management
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1I IIIIIIIIII IIIII IIIII IIIII IIIII 111(111(
Doc ID 007241380006 Type GEN
Kind LEASE
Recorded: 12/20/2011 at 10:52:52 AM
Fee Amt: $32.00 Page 1 of 6
Dubuque County Iowa
Kathy Flynn Thurlow Recorder
F11e2011- 00019538
Prepared by / Return to: Allyssa Sweeney, Iowa Dept. of Transportation, Right of Way - Property Mgt., 800 Lincoln Way, Ames, IA 50010, 515- 239 -1300
Form No. 636 -019
Iowa Department of Transportation
OFFICE OF RIGHT OF WAY
AMES, IA 50010
COMMERCIAL LEASE(Mutual Benefit)
Parcel No. 243. 252R, 254, 293 County Dubuque
Project No. F- 61- 8(22)- -20 -31 00 -- Lease No. 1 - Z.1 Co v 2.
l�1
THIS AGREEMENT made and entered into this day of i) eG2jr -r , 20 1 t , by and
between the Iowa Department of Transportation, acting for the State of Iowa (hereinafter called "Lessor ") and
City of Dubuque, State of Iowa, (hereinafter called "Lessee "), WITNESSETH:
Within the area bordered by Elm Street (City street), 9th Street (SB US 52), the Elm Street Connector
(NB US 52), and 11th Street (NB US 52), except the City owned Lot 506C. The leased area is shown in blue on
the location map.
1. The Lessor, for and in consideration of MUTUAL BENEFIT and the covenants and agreements
herein contained, hereby leases to the Lessee for Parking PURPOSES ONLY. Parking is prohibited during
winter operations, from the 1st measurable snowfall until the end of winter operations, in the designated
stalls (see Exhibit "A "). In addition, curbs or "bumpers" will be used around piers to provide for pier
protection, and no access will be allowed to US 52.
2. It is understood and agreed that the Lessee will not allow the release or disposal of any fuel, oil, grease and
any and all other petroleum products or other hazardous materials or substances within the leased area or on
any adjacent lands. It is also agreed that the Lessee will not change oil, wash any vehicles or perform any
automotive maintenance on these premises.
If any petroleum products and/or chemicals should accidentally be released upon the leased premises or
adjacent land, the Lessee agrees to immediately clean up and remove said petroleum products or chemicals
to the satisfaction of the Iowa Department of Transportation and the Department of Natural Resources.
3. Parking vehicles used for the storage of fuel, hazardous materials or substances is prohibited.
4. Lessee acknowledges that Lessee has inspected and knows the condition of the property and the same
hereby leased without any representation or warranty by the Lessor whatsoever, and without obligation on
the part of the Lessor to make any changes, alterations, repairs, or additions thereto, except as otherwise
herein provided.
5. Not to sell, transfer or assign this lease or underlet said premises or any portion thereof without prior written
consent of Lessor. Any provisions on the reverse side or attached to this lease are, by this reference, made a
part of this lease.
- 1 -
Prepared by / Return to: Allyssa Sweeney, Iowa Dept. of Transportation, Right of Way - Property Mgt., 800 Lincoln Way, Ames, IA 50010, 515- 239 -1300
Form No. 636 -019
6. Not to permit or allow the premises to be damaged, or depreciated in value by any act of negligence by
Lessee or Lessee's employees, agents, associates or others under Lessee's control or direction; to at once
repair or replace any part of the premises or fixtures or appliances therein broken, damaged, frozen, clogged
or destroyed and to prevent the freezing of pipes. No alterations, additions or improvements shall be made
by the Lessee in or upon said premises without the prior written consent of Lessor, and when made by the
same shall not be made upon credit, and Lessor and said property shall in no manner be held liable for same.
Lessee agrees to use due care and diligence in guarding said property and in using the same, as a reasonable
and careful person does their own.
7. To surrender possession of said premises at the expiration of this lease without further Notice to Quit and in
as good repair and condition as the same are now in or may hereinafter be placed, unavoidable wear through
careful use or damage by fire or the elements caused without any fault on Lessee's part.
8. To pay all public utility services used including city sewage and/or disposal service.
9. The Lessor shall not be liable for damages or injury to Lessee or Lessee's employees, agents or associates or
any of their property from any cause whatsoever which may arise out of or in connection with the use and
occupancy of the premises by any such persons or their property.
10. Lessee represents that Lessee is of good character and is not engaged in any illegal business, the untruth of
which shall be grounds for terminating this lease, as shall also be intoxication or engaging in or permitting
any unlawful business whatsoever on said premises.
11. To comply with all lawful regulations, restrictions, ordinances and laws applicable to the proper use and
occupancy of said premises; and not to allow ashes, trash, garbage or junk of any kind to accumulate on the
premises or the alley in rear thereof and to remove the same from said premises, to remove snow and other
obstructions from the sidewalks and to keep same, including ground, in as good condition as when received
or thereafter put by Lessor.
12. If for any reason Lessor desires to terminate this lease, Lessee agrees to vacate and this lease shall terminate
on Lessee receiving ninety (90) days written Notice to Quit and Lessee to surrender possession of the
premises on the day that Lessee is required to do so by the terms of the notice.
13. That Lessor, Lessor's agents, or workmen may temporarily enter premises to inspect the same, or to show
the property to persons interested in leasing or purchasing the premises, or any part thereof.
14. Lessor or Lessor's agent may place "For Rent" or "For Sale" signs on the premises at any time or at any
place.
15. That should said Lessee hold over by permission of Lessor for three (3) days after expiration of this lease, it
is agreed by all parties signing the same that it shall be a tenancy at will on a thirty (30) day term.
16. Any failure on Lessee's part to comply with any of the terms or conditions of this lease shall make the whole
amount of rent for said term due, and Lessor may proceed to collect the same, or Lessor may elect to declare
a forfeiture of this lease and all of Lessee's rights thereunder by issuing a written Notice of Forfeiture
designating the date on which said lease shall be forfeited, canceled and terminated; and the acceptance of
partial payments of rent due shall not constitute a waiver of the right of action for balance due, aided by
attachment, garnishment, ejectment, or action for forcible entry and detainer for possession on account of
the unpaid balance of rent for the month for which part payment was made, or on account of other legal
causes.
17. If, during the term of this lease, the building or premises are destroyed by fire, the elements, or any natural
cause, or become partially destroyed, so as to render the premises wholly or materially unfit for occupancy,
then this lease shall cease and become null and void from the date of such damage or destruction, and then
said Lessee shall immediately surrender said premises and/or interest therein to said Lessor. If said
premises shall be so slightly damaged by fire, the elements or natural causes so as not to render the same
unfit for occupancy in the opinion of the Lessor, then the rent accrued or accruing shall not cease, provided,
however, that said Lessor will repair the damage and restore the premises with all reasonable dispatch.
18. Lessor may enter upon the premises for the purpose of drilling test holes or making surveys during the term
of this lease, or to accommodate utility relocation.
19. This lease may be terminated by Lessee on thirty (30) days written Notice provided to Lessor.
-2-
Prepared by / Return to: Allyssa Sweeney, Iowa Dept. of Transportation, Right of Way - Property Mgt., 800 Lincoln Way, Ames, IA 50010, 515- 239 -1300
Form No. 636 -019
20. It is specifically understood and Lessee hereby agrees that the premises, or any part thereof shall at no time
or under any circumstances be used for, or devoted to political purposes or the conduct of political activities,
including, but not limited to: meetings, rallies, caucuses, administration, distribution of literature which
related to or bears upon the action of any political organization, unit or party.
21. Lessee warrants that Lessee is not employed either by the Iowa Department of Transportation or by the
Federal Highway Administration and that this lease has not been obtained by the agreement to pay any fee,
commission, percentage, gift or any other consideration to any person, and that no employee of the Iowa
Department of Transportation or of the Federal Highway Administration shall be admitted to any share or
part of this lease or to any benefit to arise therefrom.
22. All expenses incurred by Lessee for moving itself, Lessee's inventory and other personal property from the
premises, upon expiration of this lease, shall be Lessee's responsibility, EXCEPT those tenants that were in
possession of the premises at the time the State acquired title to property.
23. Damage Deposit of $0 will be held in escrow and will be returned upon inspection and approval of the
property when the lease is terminated. If, however, the Lessee has defaulted in the payment of any rent due
or owes other funds to the Lessor pursuant to the rental agreement at the time of lease termination, that
portion of the rental deposit that is needed to remedy said default or debt will be withheld by the Lessor.
24. It is understood and agreed that the Lessee will, at the termination of this lease, restore the leased premises
to a condition substantially similar to the condition which it was in at the beginning of this lease. The Lessee
further agrees to reseed all disturbed areas of the leased premises. The Lessee agrees that all restoration and
reseeding work will be done to the satisfaction of the Iowa Department of Transportation and all at Lessee's
expense.
Failure of the Lessee to leave the premises in the same or better condition that it was on, on the date the
lease began, shall cause the Lessor to claim, from Lessee, all cost incurred to recondition the parcel as it was
prior to leasing date.
The Lessee shall furnish the State with an appropriate certificate or copy of a current liability
insurance policy in the minimum amount of $1,000,000,00, which must be in effect during the entire term of
the lease as stated above. Said policy must specifically include the leased premises and must also include
the Lessor as an additional insured party and must meet with the satisfaction of the Lessor. If the Lessee
fails to furnish proof of insurance promptly after taking possession of the premises or fails to maintain such
insurance during the entire term of this lease, such failure shall be cause for forfeiture, cancellation and
termination of this lease.
LESSEE:
City of Dubu
BY:
Roy D Buol , ayor
(Sign above, and type /print name and title)
November 7, 2011
Date
Telephone No. 563-589-41 2 1
Mobile Phone No. 563 - 564 -5455
STATE OF IOWA, COUNTY OF , ss:
On this 7th :day of November , 2011 , before me, the undersigned, a Notary Public in and
for said State, personally appeared Roy D. Buol to me known to be
the identical person(s) named in and who executed the foregoing instrument, and acknowledged that (he) (she)
,(they!) e-xec9ute&the same as (his) (her) (their) voluntary act and deed.
mF-
,,° (SEAL
KEVIN S. FIRNSTAHL
COMMISSION NO.745295
:tifY 0 !SS!ON EXPIRES
•
v
(Sign in Ink)
K P v i S. F i r n s t a h l (Type/Print Name)
Notary Public in and for the State of Iowa
My Commission Expires: 2/12/13
- 3 -
Prepared by / Return to: Allyssa Sweeney, Iowa Dept. of Transportation, Right of Way - Property Mgt., 800 Lincoln Way, Ames, IA 50010, 515- 239 -1300
Form No. 636 -019
APPROVED:
APPROVAL RECOMMENDED: IOWA DEPART
BY: VW / J I BY:
J
J. Thomas Lind
Property Manager
Telephone No. 515- 239 -1501
Date
NT OF TRANSPORTATION
Mike L. Jackson ` Date
Property Manage
Office of Right o
upervisor
ay
STATE OFAOWA, teJ NTY OF STORY, ss:
On this L day oC ON Otr , 20 1 , before me, the undersigned, a Notary Public in
and for the State of Iowa, personally appeared Mike L. Jackson, to me personally known, who being duly sworn
did say that he is the Property Management Supervisor for the Iowa Department of Transportation, and that said
instrument was signed on behalf of said Department by its authority and the said person, as such officer,
acknowledged the execution of said instrument to be the voluntary act and deed • said Department, by it
voluntarily executed.
(NOTARY SEAL)
_ 1 (Sign in Ink)
rint/Type Name)
Notary Public in and for said State
My Commission Expires: %" `-t4 203
/24.1)
Prepared by / Return to: Allyssa Sweeney, Iowa Dept. of Transportation, Right of Way - Property Mgt, 800 Lincoln Way, Ames, IA 50010, 515- 239 -1300
Form No. 636 -019
APPENDIX A
ATTACHMENT TO LEASE
The Lessee, for itself, Lessee's personal representatives, successors in interest and assigns, as a part of the
consideration hereof, does hereby covenant and agree as a covenant running with a land that:
(1) In the event facilities are constructed, maintained, or otherwise operated on the said property described
in this lease, for a purpose of which a Department of Transportation program or activity is extended or
for another purpose involving the provision of similar services of benefits, the Lessee shall maintain
and operate such facilities and services in compliance with all other requirements imposed pursuant to
Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the
Secretary, Part 21, Nondiscrimination in Federally- Assisted Programs of the Department of
Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may
be amended.
(2) No person on the ground of race, color, sex, age, disability, or national origin shall be excluded from
participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said
facilities.
(3)
That in the construction of any improvements on, over or under such land and the furnishing of
services thereon, no person on the ground of race, color, sex, age, disability, or national origin shall be
excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination.
(4) That the Lessee shall use the premises in compliance with all other requirements imposed by or
pursuant to Title 49,'Code df Federal Regulations, Department of Transportation, Subtitle A, Office of
Secretary, Part 21, Nondiscrimination in Federally- Assisted Programs of the Department of
Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may
be amended.
That in the event of breach of any of the above nondiscrimination covenants, the State of Iowa shall have the
right to terminate the lease and to re -enter and repossess said land the facilities thereon, and hold the same as if
said lease had never been made or issued.
Exhibit "A"
Desman Architects