Loading...
Property Purch from RR - Shot Tower area D~~~E ~Yk-~ 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. ~ (). .,/ i ti LeV) .f Michael C. Van Milligen - MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer ;J ,~ ,-.., ., --. 6~~~E ~<k~ 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 -.--- ~ -..--.---- 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.