Star Brewery Lease Agreement Amendment Historic Star
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MEMORANDUM
August 29,2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Third Amendment to Lease Agreement with Historical Star
Redevelopment L.L.C. for the Star Brewery Building
Economic Development Director David Heiar recommends City Council approval of a
Third Amendment to the Lease Agreement between the City of Dubuque and Historical
Star Redevelopment L.L.C. to allow the developer until December 31,2005 to secure
tenants for the project while the City pursues issuance of a new Request for Proposals
for the property redevelopment.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen '-
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
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CITY OF DUBUQUE, IOWA
MEMORANDUM
August 19, 2005
TO: Michael Van Milligen, City Manager
FROM: David Heiar, Economic Development Director\tJ(}~
SUBJECT: Third 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 third amendment to the Lease Agreement with Historical Star
Redevelopment L.L.C. to extend the original lease through December 31,2005.
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 project is contingent on the developer securing tenants for the property. The
developer and their local leasing agent, Prudential Friedman Realty, have been working
over the past months with a potential tenant who would take 2/3 of the ground floor of
the building for a substantial, entertainment-based operation. Unfortunately,
negotiations have not been finalized at this date. Other tenants seeking smaller spaces
have also expressed interest in the property but the anchor tenant must be secured
first.
The proposed lease amendment extends the lease through December 31, 2005 with
language allowing the City to issue a new Request for Proposals (RFP) during that time
period and allowing respondents to the RFP to have access to the property. The
Alexander Company will also be invited to respond to the RFP. However, if they are
unsuccessful in their current marketing efforts, it is time to test whether there are other
developers interested in the property.
RECOMMENDATION
I recommend the City Council approve the third amendment to the Lease Agreement
between the City of Dubuque and Historical Star Redevelopment L.L.C. to allow the
developer until December 31, 2005 to secure tenants for the project while the City
pursues issuance of a new Request for Proposals for the property redevelopment.
ACTION STEP
The action step for the City Council is to adopt the attached Resolution.
attachments
Prepared by: Pamela Myhre, Economic Development Planner
F:\USERS\Pmyhre\WPDOCS\LOANDOC\Alexander\3rdamendment.mem.d oc
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RESOLUTION NO. 409-05
AUTHORIZING THE EXECUTION OF A THIRD 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
through December 31,2005; and
Whereas, a Third 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 Third 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 behalf of the City of Dubuque, Iowa, the Third Amendment to Lease
Agreement.
Passed, approved and adopted this 6TH day of September 2005.
Terrance M. Duggan
Mayor
Attest:
Jeanne F. Schneider, City Clerk
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anne F. Schneider
City Clerk
F:\USERS\Pmyhre\WPDOCS\LOANDOC\Alexander\3rdamendment. res.doc
THIRD AMENDMENT
TO
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
HISTORICAL STAR REDEVELOPMENT L.L.C.
THIS THIRD AMENDMENT TO LEASE AGREEMENT (Third Amendment) is 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 term of the Lease was extended until the 16th day of August 2005 by the
Second Amendment to Lease Agreement; and
WHEREAS, the parties desire to extend the term of the Lease Agreement through
December 31,2005.
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 31st day of
December 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.
3. The parties hereby agree that Lessor shall have the right to prepare and issue a new
Request for Proposals related to the redevelopment of the Property during the term of the Lease
Agreement and that Lessee will provide access to the Property to third parties, given reasonable
notice thereof, for purposes related to the Request for Proposals.
IN WITNESS WHEREOF, the parties have caused this Third Amendment to Lease
Agreement to be executed by their respective duly authorized officers or representatives.
CITY OF DUBUQUE, IOWA
HISTORICAL STAR REDEVELOPMENT
L.L.C.
by:
by:
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Randall P. Aexander,
Managing Member
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\USERS\Pmyhre\WPDOCS\LOANDOC\Alexander\ ThirdAmendmentLease.doc