Property Purch from RR - Shot Tower area
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MEMORANDUM
December 13, 2005
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Chicago, Central and Pacific Railroad Company
Port of Dubuque - Real Estate Sale Contract Addendum
In an effort to improve access from the Port of Dubuque main campus to the Historic Shot
Tower area and to maximize the developable land area adjacent to the Star Brewery property,
staff has been working to develop plans for the construction of the Bell Street Extension, also
referred to as Shot Tower Drive.
The proposed plans provide for the construction of a new roadway extension, north of existing
Bell Street, on a new alignment to the northeast, parallel to the existing railroad tracks and
adjacent to the Star Brewery property. Proposed Shot Tower Drive will extend to the north side
of the train bridge underpass and will terminate at 7'h and Commercial Streets.
The Railroad Real Estate Property Acquisition Agreement was previously approved by the City
Council on May 2, 2005; however, the Railroad has requested additional language be added
before they execute the agreement.
City staff has consulted with Corporation Counsel, and although the language is rather broad
and applies even if the Railroad is negligent, it is limited to property damage. Corporation
Counsel has suggested that we could request that the language be limited to property damage
caused by the Railroad's non-negligent conduct, but we are probably not in the best position to
negotiate for that change.
City Engineer Gus Psihoyos recommends City Council approval of an addendum to the Railroad
Real Estate Property Acquisition Agreement with the Chicago, Central and Pacific Railroad
Company.
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
Gus Psihoyos, City Engineer
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MEMORANDUM
December 12, 2005
TO:
FROM:
Michael C. Van Milligen, City ManageQr
Gus Psihoyos, City Engineer YJ. .
SUBJECT: Chicago, Central and Pacific Railroad Company
Port of Dubuque - Real Estate Sale Contract Addendum
INTRODUCTION
The purpose of this memorandum is to request that the City Council consider the
approval of an addendum to the Railroad Real Estate Property Acquisition Agreement
with the Chicago, Central and Pacific Railroad Company for the purpose of completing
public improvements for the Bell Street Extension (Shot Tower Drive).
BACKGROUND
In an effort to improve access from the Port of Dubuque main campus to the Historic
Shot Tower area and to maximize the developable land area adjacent to the Star
Brewery property, staff has been working to develop plans for the construction of the
Bell Street Extension, also referred to as Shot Tower Drive.
The proposed plans provide for the construction of a new roadway extension, north of
existing Bell Street, on a new alignment to the northeast, parallel to the existing railroad
tracks and adjacent to the Star Brewery property. Proposed Shot Tower Drive will
extend to the north side of the train bridge underpass and will terminate at 7th and
Commercial Streets.
On May 2, 2005, the City Council adopted Resolution No. 179-05 which approved the
Railroad Real Estate Property Acquisition Agreement between the City and the
Chicago, Central and Pacific Railroad Company for the purchase of property necessary
for the construction of Shot Tower Drive for a purchase price of $86,360.
DISCUSSION
The Railroad Real Estate Property Acquisition Agreement has been reviewed and
authorized by all of the necessary Railroad management departments. However, before
final approval and execution of the contract, the Railroad has requested that the
following language be added as paragraph No.6, Rail Operations:
Buyer acknowledges that Seller's rail operations may restrict Buyer's use of
the sale premises and may damage improvements or personalty within the
sale premises. Buyer agrees to indemnify and release Seller from any and all
costs associated with damages to improvements or personalty located within
the sale premises caused by Seller's rail operations, regardless of negligence.
This covenant shall be binding upon Buyer, its successors, grantees and
assigns and shall run with the land conveyed.
Staff has consulted with the Corporation Counsel. Although the language is rather broad
and applies even if the Railroad is negligent, it is limited to property damage. The
Corporation Counsel has suggested that we could request that the language be limited
to property damage caused by the Railroad's non-negligent conduct, but we are
probably not in the best position to negotiate for that change.
RECOMMENDATION
I recommend the addendum to the Railroad Real Estate Property Acquisition
Agreement between the City and the Chicago, Central and Pacific Railroad Company
for the purpose of completing public improvements for the Bell Street Extension (Shot
Tower Drive) be approved.
ACTION TO BE TAKEN
The City Council is requested to adopt the attached resolution, which approves and
authorizes the City Manager to execute an addendum to the Railroad Real Estate
Property Acquisition Agreement between the City and the Chicago, Central and Pacific
Railroad Company for the purpose of completing public improvements for the Bell Street
Extension (Shot Tower Drive).
Prepared by Robert D. Schiesl, Assistant City Engineer
cc: Cindy Steinhauser, Assistant City Manager
Dawn Lang, Budget Director
David Heiar, Economic Development Director
Pam Myhre, Economic Development
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RESOLUTION NO. 554-05
APPROVING AN ADDENDUM TO THE RAILROAD REAL ESTATE
PROPERTY ACQUISITION AGREEMENT BETWEEN THE CITY OF
DUBUQUE (CITY) AND THE CHICAGO, CENTRAL AND PACIFIC
RAILROAD COMPANY FOR THE PURPOSE OF ACQUIRING
PROPERTY TO COMPLETE PUBLIC ROADWAY IMPROVEMENTS.
Whereas, the City Council on the 5th day of May, 2005 approved the Railroad
Real Estate Property Acquisition Agreement with the Chicago, Central and Pacific
Railroad Company for the purpose of acquiring property to complete public
improvements for the Bell Street Extension (Shot Tower Drive); and
Whereas, the Chicago, Central and Pacific Railroad Company proposes an
Addendum to the Agreement, a copy of which is attached hereto.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCILOF THE CITY
OF DUBUQUE,IOWA:
Section 1: That the Addendum to the Railroad Real Estate Property Acquisition
Agreement between the City of Dubuque and the Chicago, Central and Pacific Railroad
Company is hereby approved.
Section 2: That the City Manager is authorized and directed to execute the
Addendum on behalf of the City of Dubuque.
Passed, adopted and approved this 19th day of
Attest:
eanne F. Schneider, CMC, City Clerk
FROM Rai I Property Management
(WEDJl10V 16 2005 10:49/ST.10:49/NO. 6310547980 P
Rail Property Management
Alice M. O'Donnell
57 Ogden Avenue
C1..-endon Hill., TL 60514
Direct Line: 630-325-6726
Fax: 630-325-6908
e-mail:
aodonnell@railproperty.com
Via Facsimile 563-589-4205
(This transmission consists of :l. pages counting this cover sbeet.)
November 16, 200!!
To:
Robert D. Scbiesl, P. E.
City of Dubuque
From:
Alice M. O'Donnell
Subject:
Tbe Cbicago, Central /It, Pacific Property in tile City of Dubuque, Iowa.
Railroad's management has requested that thc following tcrm be added as paragraph 6 to thc
Addendum of the City's June 2005 offer.
6, Rail Operations
Buyer acknowledges that Seller's rail operations may restrict Buyer's use of the sale
premises and may damage improvements or personalty within the sale premises. Buyer
agrees to indemnity and release Seller from any and all costs associated with damages to
improvements or personalty located within the sale premises caused by Seller's rail
operations, regardless of negligence. This covenant shall be binding upon Buyer, its
successors, grantees and assigns and shall run with the land conveyed.
Would you please review the above language with the City Attorney and if the City agrees,
please sign below. Once we have the City's agreement, we believe that upper management will
fmally agree to fully execute the City's offer. .
ACCEPTANCE:
City of Dubuque
It is Impt!l'aJive to ulliknttuul thai lID accepttuU:e is implied on the pan of The Chicago,
CelfJral & Paclflc Railroad COltlpallJ', unless you receive afuUy-executed counterpan of
the contract signed by railroad's nUlIIagenumt. The railroad reserves the right to accept
or reject all offers during this fllUll review process.