ConAgra Foods Improvements Request
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MEMORANDUM
January 31,2006
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: ConAgra Foods, Inc., Request for Approval of Improvements
In September of 2002, the City Council approved a Lease Agreement with ConAgra Foods,
Inc., to accommodate the relocation of ConAgra (Peavey) from the Port of Dubuque to the 12th
Street Peninsula on property formerly occupied by Flynn Ready-Mix.
Section 3.2 of the Lease Agreement provides that ConAgra may construct, with prior written
consent of the City, improvements necessary to the successful operation of the business. The
consent may not be unreasonably withheld.
ConAgra has submitted plans for the construction of a third tank to be used for the storage and
transfer of liquid fertilizer. Peavey Grain General Manager Delbert Uhlick has submitted a
letter requesting City Council permission to construct the improvements.
Economic Development Director David Heiar is recommending approval subject to two
conditions:
1. ConAgra processes the plans and specifications through the City's design review
process, and meets all City codes and requirements for construction of the
improvements.
2. The storage tanks and improvements are kept in good physical condition during the life
of the lease.
I concur with the recommendation and respectfully request Mayor and City Council approval.
/1u'1 ((h/l~
Michael C. Van Milligen
MCVM/je
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
F:IUSERSIDHeiarIMemo from MVM to City Council ConAgra Improvements.doc
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MEMORANDUM
January 31, 2006
TO: Michael Van Milligen, City Manager f:\
FROM: David J. Heiar, Economic Development DirectorW~'
SUBJECT: ConAgra Foods, Inc. request for approval of improvements
INTRODUCTION
The purpose of this memorandum is to request City Council approval of an
improvement to property leased by the City of Dubuque to ConAgra Foods.
BACKGROUND
In September of 2002, the City Council approved a Lease Agreement with ConAgra
Foods, Inc. to accommodate the relocation of ConAgra (Peavey) from the Port of
Dubuque to the 1ih Street Peninsula on property formerly occupied by Flynn Ready Mix
(Lot 9; Block 4, and Riverfront Subdivision #2).
Section 3.2 of the Lease Agreement provides that the ConAgra may construct, with prior
written consent of the City, improvements necessary to the successful operation of the
business. The consent may not be unreasonably withheld.
Section 8 of the Lease Agreement provides the Company the right, with the City's
written consent if the cost is greater than $50,000, to make any alteration, addition or
modification to the Leased Premises. Again, the consent of the City may not be
reasonably withheld.
Section 9 of the Lease Agreement allows the Company to use the property and
improvements for the storage of commodities.
DISCUSSION
ConAgra has submitted plans for the construction of a third storage tank to be used for
the storage and transfer of liquid fertilizer. Delbert Uhlick, General Manager of Peavey
Grain has submitted a letter requesting City Council permission to construct the
improvements according to the lease agreement. Attached are the plans and the letter.
City staff has reviewed the plans and the lease agreement with Corporation Counsel
Barry Lindahl. Mr. Lindahl advises the City Council action is necessary for the company
to move forward with the improvements.
RECOMMENATION
Since the City Council cannot unreasonably withhold consent, I recommend the City
Council approve a letter of consent for these improvements subject to the following:
1. ConAgra processes the plans and specifications through the City's Site Plan
review process, and meet all City codes and requirements for construction of
the improvements.
2. The storage tanks and improvements are kept in good physical condition
during the life of the lease.
ACTION STEP
I recommend City Council approval of the attached letter from the City Manager.
F:IUSERSIDHeiarlMemos to MVMIConAgra Foods, Inc. request for approval of improvements.doc
January 31, 2006
Delbert Uhlik
General Manager - Peavey Grain
ConAgra Foods
505 East ih Street
Dubuque, IA 52001
Re: Request to construct Liquid Fertilizer storage tanks and transfer facility
Dear Mr. Uhlik:
The City Council has reviewed your request to construct a liquid fertilizer tank on
property leased by your company on Lot 9, Block 4, River Front Subdivision #2 in the
City of Dubuque, Iowa.
The City of Dubuque consents to the improvements, subject to the following conditions;
1. The Company obtains a building permit and site approval from the City.
2. The Company shall keep the exterior and interior of the improvements in
good order, condition and repair for the life of the lease agreement.
Sincerely,
Michael Van Milligen
City Manager
F:IUSERSIDHeiar\letter to Del Uhlik from MVM fert tanks.doc
ConAgraFoods'
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Peavey Grain
505 East 1" Str
[}ubuque,U\ 52001
2-1-2006
City of Dubuque
City Manager's Office
50 West 13th Street
Dubuque, Iowa 52002-4864
Ref Land improvements on Lot 9, Block 4, River Front Subdivision #2
To: The Honorable Mayor and City Council Members of[}Ubuque
ConAgra Foods, Inc. d/b/a Peavey Grain is requesting the approval of the City of
Dubuque to build an additional storage tank at the liquid fertilizer plant on land leased at
Lot 9, Block 4, and River Front Subdivision #2. According to the said lease Peavey
Grain must receive approval from the City of [}Ubuque before any land improvements
can be made.
The purpose of this improvement is to increase the storage capacity of the facility to
better serve our customer base. ConAgra has a budgeted number for this addition of
approximately $500,000. Please accept this as the written request for such
improvements.
Sincerely,
0--7~/
Delbert Uhlik
General Manager - Peavey Grain
Dubuque, Iowa
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