Water Works Park Naming Rights
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MEMORANDUM
September 1 , 2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Water Works Park Naming Rights
The President and Chief Executive Officer of AY McDonald, Mike McDonald, is
requesting that the Mayor and City Council consider honoring Andrew Young McDonald
by naming the former Hawthorne Street Peninsula in his honor. A Y McDonald was a
notable early settler in the City of Dubuque who had a profound impact on the shaping
of our City and whose legacy lives on today through the A Y McDonald Manufacturing
Company.
The A Y McDonald Manufacturing Company Charitable Foundation has offered to
donate $250,000 to the City and A Y McDonald Manufacturing Company has offered to
prepay their $1.2 million UDAG economic development loan seven years ahead of
schedule. Since this loan is currently only paying 2% interest, this prepayment has an
approximate $250,000* value to the City. The total gain to the City is $500,000.
Mr. McDonald has assured me that the donation and the prepayment will be received by
November 1 , 2005.
I respectfully recommend Mayor and City Council approval of the naming of the former
Hawthorne Street Peninsula as A Y McDonald Park. The park is scheduled for
completion in 2006.
!fJtl If, '1 /h i'--.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
* Assuming between 4% to 5% interest, the $1.2 million would be worth between
$192,000 and $296,000.
~DY;L1~P~INCM!9. Co.
August 18, 2005
Mr. Michael Van Milligan
City Manager
City Hall
50 West 13th Street
Dubuque, IA 52001
Dear Mike:
This letter is a follow up to our recent conversation concerning the naming rights for Water
Works Park.
As you know, Rob McDonald and I have been soliciting support for this initiative to recognize
A. Y. McDonald, the founder of our Company, for his many contributions to this community.
We would like to secure the naming rights to this park to honor A. Y. McDonald and coincide it
with our 150th Anniversary Celebration scheduled for early fall of 2006.
In consideration for this, A. Y. McDonald will make a $250,000 contribution from our
Charitable Foundation and prepay our UDAG loan in the amount of$1.2 million to the City of
Dubuque seven years ahead of schedule.
I would ask that you consider this; and if you concur with our proposal, please add this to the
City Council's agenda. We are eager to move forward and are prepared to culminate this
transaction by year-end 2005.
Sincerely,
A hGJf
'Michael B. MCDO~
President & Chief Executive Officer
MBM/ch
Water Works Brass
Plumbing Valves and Fittings
Pumps and Water Systems
Distribution Gas Valves/Meter Baf'5
MallingAadress P.O. BOX 508. DUBUQUE, fA 52004-0508 ShippIng Address 4800 CHAVENELlE ROAD. DUBUQUE, fA 52002
PHONE 563/583-7311 . FAX 563/588-0720 . WEB www.aymcdonald.com
.
NOTE
$1,200,000
December 1 , 1982
A. Y. McDonald Mfg. Co. hereby promises to pay to the City of Dubuque
Iowa, the principal sum of One Million Two Hundred Thousand Dollars
($1,200,000) pursuant to the terms and conditions of a certain "Loan Agreement
and General conditions" entered into between the City of Dubuque, Iowa, as
"Lender II and A. Y. McDonald Mfg. Co., as "Companyll, dated 23 August 1982.
The principal due under this Note shall become due and payable on
December 1 , 2012. Interest shall accrue at the rate of two per cent
(2%) per annum. cOMputed on ;l 365 day basis.
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Notwithstanding the face amount of this Note, the principal amount
shall be the sum or aggregate amount of the disbursements by the City of
Dubuque to the Company. As each disbursement is made, the amount and date
thereof shall be endorsed on the reverse side hereof and interest shall accrue
on each disbursement from the date made at the rate6ftwo per cent (2%) per
. . .'...
annum.
'Interest onTy shall be payable annually by the Company to the City of
Dubuque during the.term of this loan.
The first payment of interest shall be due on December 1 ,1983
and interest shall be payable annually on that date thereafter.
Reference ;s hereby made to the terms and conditions of the Loan
Agreement and General Conditions under which this Note. may be prepaid or its
maturity date accelerate.
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A. Y. ,McDONALD. MFG. CO. ,,/
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By:JI?2t~~ c.//i:r { c. 'L____
Pres i den t #""--"
By ()7 D " . c~ -L?/ .
Vice President & Corporate Secretary
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July 14,2005 Q
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Mayor Terry Duggan
City of Dubuque : i
City Hall 1:' ..--,
50 W 13th Street i...:
Dubuque, IA 52001
Dear Mayor Duggan.
I am writing you to formally request the inclusion of the following agenda item for the
city council to consider:
The naming of Water Works Park to be permanently changed to A.Y.
McDonald Park in consideration for a $250,000 contribution by the A. Y.
McDonald Mfg. Co. Charitable Foundation towards the construction of the
park.
There are many reasons that I make this request. First and foremost is to honor the
memory of Andrew Young McDonald, a most notable early settler in the City of
Dubuque who had a profound impact on the shaping of our city and whose legacy lives
on today through the A.Y. McDonald Mfg. Co. Other pertinent reasons include:
Andrew Young McDonald started his company in 1856 and has operated
continuously in Dubuque for 149 years. 2006 will mark the sesquicentennial of the
company and it's founding in Dubuque.
Andrew Young McDonald operated this company for 35 years before his death in
1891.
A. Y. McDonald has 350 local employees and 7 generations of Dubuquers have
worked for this company, The economic impact to the City of Dubuque of what
Andrew Young McDonald started 149 years ago is incalculable.
The A. Y. McDonald Mfg. Co. Charitable Foundation has been very charitable with
many local organizations both large and small, over the years. This is also true of
the McDonald family on an individual basis. Much of this has been behind the
scenes.
Much like other parks in the city that are named for influential leaders that have
impacted Dubuque, we feel Andrew Young McDonald deserves similar public
recognition.
While I realize the council and city manager wish to maximize the revenue from this
naming opportunity, I ask you to give some consideration to Andrew Young McDonald's
place in this city's history. I am always amazed at what great lengths the city will go to
attract new industry to our city. I commend these efforts. Although, let us not forget to
give equal consideration to those who have been in Dubuque since the beginning and
have been the foundation that has steadied and supported the city through good times and
bad.
I ask all council members to give this request serious and expedient consideration. With
the continued development throughout the City of Dubuque and surrounding area, there
will be no doubt, numerous other naming opportunities for the A. Y. McDonald Mfg. Co.
Charitable Foundation to consider through various projects undertaken by different
philanthropic organizations. It is our intent to have a major naming opportunity in place
to coincide with our company's 150th anniversary in 2006.
Sincerely,
A.Y. McDonald Mfg. Co. Charitable Foundation
Rob McDonald
Cc Via Email: Council Members
Jeanne Schneider - City Clerk
M'dIhgAdllnss P.O. BOX 50S. DUBUQUE, IA 5:lJOO4.()S08 ~Mlhss 4800 CHAVENELU ROAD. OU8UQlJE.1A 521002
PHONE 8001292-2737 . fAX 800J832-9296 . salesOaymalonald.com . www.aymcdollald_CDIII