Dubuque Terminals Amendment to Lease AgreementMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Dubuque Terminals, Inc. Lease Amendment
DATE: November 28, 2011
Dubuque
kard
All- America City
I
2007
Economic Development Director Dave Heiar recommends City Council approval of the
First Amendment to the Lease Agreement between the City of Dubuque, Iowa, and
Dubuque Terminals, Inc. (The Ice Harbor Lease).
The First Amendment to the lease will allow Dubuque Terminals, Inc. the right to use
the shoreline of Parcel B at anytime (not just when the harbor gates are closed), but
only for the purpose of docking, loading and unloading vessels or barges. The
amendment also provides for Dubuque Terminals, Inc. to pay the City rent for use of the
Parcel B shoreline in the amount of $29,500 per year in twelve equal monthly
installments commencing on the 15th day of March, 2012, and on the 1st day of each
month thereafter during the term.
This lease amendment would also extend the term of the lease by six months from
June 30, 2014 to December 31, 2014. All other terms of the lease would remain as
previously agreed.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
dtit)144 (4-117;45
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 C. Van Milligen, City Manger
FROM: David J. Heiar, Economic Development Director
RE: Dubuque Terminals, Inc. Lease Amendment
DATE: November 28, 2011
Dubuque
kEttd
All-America City
'1111'
2007
INTRODUCTION
This memorandum presents for City Council review and approval of the First Amendment to the
Lease Agreement between the City of Dubuque, Iowa and Dubuque Terminals, Inc. (The Ice
Harbor Lease).
DISCUSSION
On May 3, 2010, the City entered into a four year lease with Dubuque Terminals, Inc. for real
property shown on Exhibit A from March 1, 2010 to June 30, 2014.
One of the terms of the four year lease is that Dubuque Terminals, Inc. shall have the right to
use the shoreline along Parcel B only when the gates to the Ice Harbor are closed due to
flooding and only for the purpose of docking vessels or barges. The lease also provides that
Dubuque Terminals, Inc. will pay rent for the use of the Parcel B shoreline in the amount of
$350 per day or any part of a day.
The First Amendment to the lease provides for amending Section 2.2 of the lease to allow
Dubuque Terminals, Inc. the right to use the shoreline shown along Parcel B at anytime (not just
when the harbor gates are closed), but only for the purpose of docking, loading and unloading
vessels or barges. The amendment also provides for Dubuque Terminals, Inc. to pay the City
rent for use of the Parcel B shoreline in the amount of $29,500 per year in twelve equal monthly
installments commencing on the 15th day of March, 2012, and on the 1st day of each month
thereafter during the term.
This lease amendment would also extend the term of the lease by six months from June 30,
2014 to December 31, 2014. All other terms of the lease would remain as previously agreed.
Exhibit A — Lease Parcels A and B to the Lease is deleted and is substituted with Exhibit A
attached to the First Amendment.
The proposed First Amendment to the Lease Agreement is attached.
RECOMMENDATION /ACTION STEP
I recommend that the City Council approve the First Amendment to the Lease Agreement with
Dubuque Terminals, Inc. (The Ice Harbor Lease) and authorize the City Manager to sign the
First Amendment to the Lease Agreement.
Attachments
F: \USERS \Econ Dev \Newt \Ice Harbor\20111128_ Newt 1st Amendment Lease Council Memo.doc
EXHIBIT A
LEASE PARCELS A AND B
17
18
Prepared by David J. Heiar, 50 West 13th Street, Dubuque, IA 52001 563 - 589 -4393
RESOLUTION NO. 401 -11
RESOLUTION APPROVING A FIRST AMENDMENT TO THE LEASE AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND DUBUQUE TERMINALS, INC.
WHEREAS, the City of Dubuque, Iowa (City) owns the real property shown on
Exhibit A in the City of Dubuque, Iowa; and
WHEREAS, City and Dubuque Terminals, Inc. have negotiated a 4 year Lease
Agreement for said real property, a copy of which Lease Agreement is on file at the office
of the City Clerk, City Hall, 13th and Central Avenue, Dubuque, Iowa; and
WHEREAS, City and Dubuque Terminals, Inc. have agreed to extend the term of
the lease by six months; and
WHEREAS, City and Dubuque Terminals, Inc. have agreed to amend Section 2.2
of the Lease Agreement, to allow Dubuque Terminals, Inc. the right to use the shoreline
along Parcel B at anytime for the purpose of docking, loading and unloading vessels or
barges; and
WHEREAS, City and Dubuque Terminals, Inc. have agreed to amend the rent
payments to the City for use of the Parcel B shoreline from a per day fee to twelve equal
monthly installments; and
WHEREAS, the City Council believes it is in the best interests of the City of
Dubuque to approve the First Amendment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The First Amendment between City and Dubuque Terminals, Inc. is
hereby approved and the City Manager is authorized to execute said amendment on
behalf of the City of Dubuque.
Passed, approved and adopted this 5th day of December, 2011.
Attes
evin S.
irnstahl, City Clerk
F: \USERS \Econ Dev\Newl \Ice Harbor\20111128_ Reso for Approv 1st Amend to Ice Harbor Lease.doc
FIRST AMENDMENT
TO
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
DUBUQUE TERMINALS, INC.
(The Ice Harbor Lease)
This First Amendment to Lease Agreement (the Lease), dated for reference
purposes this 5th day of December , 2011, is made and entered into by and
between the City of Dubuque, Iowa, an Iowa municipal corporation (Lessor), and
Dubuque Terminals, Inc., an Iowa corporation (Lessee).
Whereas, Lessor and Lessee entered into the Lease, dated May 3, 2010; and
Whereas, Lessor and Lessee desire to amend the Lease as set forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN LESSOR AND
LESSEE AS FOLLOWS:
1. Section 1 of the Lease is amended to read as follows:
SECTION 1. DEMISE AND TERM. In consideration of the rents hereinafter reserved
and the terms, covenants, conditions and agreements set forth in this Lease, Lessor
hereby leases to Lessee the real property shown on Exhibit A (collectively the Demised
Premises), to have and to hold for an initial term commencing as of the 1st day of March,
2010, and ending at midnight on the 31st day of December, 2014 (the Term), subject to
all of the terms, covenants, conditions and agreements contained herein.
Expiration of this lease after 4 years is contingent upon acquisition of the Dove Harbor
Lease, as attached hereto. If the Dove Harbor Demised Premises are not available as
required by the Dove Harbor Lease, at no fault of Lessee, the Term of this Ice Harbor
Lease shall be extended to midnight on the 30th day of June, 2015 on the same terms
and conditions herein.
2. Section 2 of the Lease is amended to read as follows:
SECTION 2. RENT, TAXES, AND OTHER PAYMENTS.
2.1. Rent.
(1) Parcel A. Lessee shall pay Lessor, in addition to taxes, fees, rates,
charges, levies, assessments, and all other charges required to be paid under
this Lease by Lessee, rent for Parcel A in the amount of $100,000.00 per year, in
twelve equal monthly payments commencing on the 1st day of July, 2010 and on
110411baI
the first day of each month thereafter during the Term.
(2) Parcel B. Lessee shall have the right to use the shoreline shown along
Parcel B but only for the purpose of docking, loading and unloading vessels or
barges. Lessee shall pay Lessor rent for use of the Parcel B shoreline in the
amount of $29,500.00 per year in twelve equal monthly installments commencing
on the 151" day of March, 2012, and on the 1' day of each month thereafter
during the Term.
3. Exhibit A attached to the Lease is hereby deleted and Exhibit A
attached to this First Amendment is substituted in lieu thereof.
4. All other terms and conditions of the Lease shall remain in full force
and effect.
LESSOR:
LESSEE:
CITY OF DUBUQUE, IOWA DUBUQUE TE INALS, INC.
By:
OLI
Roy D.,,:, uol, Mayor
Attest:
JA rd ,d%g.rZgr4lr
v n S. Firnstahl, City Clerk
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