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Dove Harbor Lease Agreement_Gavilon Grain, LLCTHE CITY OF Dui Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Lease Agreement for a portion of Dove Harbor DATE: June 28, 2013 Dubuque AI-America CitY 'I I.' 2012 Acting Economic Development Director Phil Wagner is recommending City Council authorization of a 30 -day public notice on the competitive disposition of approximately 7.87 acre site Dove Harbor. Written proposals for the lease of this portion of Dove Harbor will be received by the City Clerk at or before 10:00 a.m., August 5, 2013. Any proposal received will be presented to the City Council at the August 5, 2013, City Council meeting. I concur with the recommendation and respectfully request Mayor and City Council approval. 1,ilwx :..,/),4,,, Michael C. Van Milligen MCVM:sv Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Phil Wagner, Acting Economic Development Director Masterpiece on the Mississippi DATE: June 28, 2013 TO: Michael Van Milligen, City Manager FROM: Phil Wagner, Acting Economic Development Director SUBJECT: Lease Agreement for a portion of Dove Harbor INTRODUCTION This memorandum provides for City Council consideration a Lease Agreement for a portion of the Dove Harbor area. A resolution is attached to set a competitive process accepting proposals for the lease of this site. With this lease, the City anticipates to receive annual lease and wharfage payment beginning at $530,000. Dubuque All- America City 11111 2012 BACKGROUND Until June 2012, Cargill leased approximately 15 acres of City owned river front land in Dove Harbor. The Company indicated that it was not interested in renewing this lease based on the City's intent to adjust river front leases to more accurately reflect the current market rate. In May 2010, the City Council approved the lease of approximately 7 acres of this site to Dubuque Terminals (Newt) to be effective February, 2013. Gavilon Grain LLC, has already signed a two month lease for the balance of this site and is now proposing a long term lease for this property. In March of 2012, the City Council approved a river front lease with Flint Hills Resources Pine Bend LLC. This was a 10 year lease with a 3 year option. Flint Hills had a previous lease for the 20.09 acre site in Dove Harbor which would have expired in March of 2014. The previous lease was approved by the Dock Commission in 1964 and provided for an annual lease payment of $7,000 plus $1,666 in wharfage fees. Under this lease, the City was responsible for property taxes and dredging costs, which on average exceeded the annual revenue generated from this lease. That old lease also did not provide for any inflation adjustments. The March 2012 lease approved by the Council provided payments of $337,500 thru March of 2014, at which time the lease rate will become $650,000 per year plus wharfage fees which are expected to generate another $20,000 per year. Flint Hills will also be responsible for dredging costs and property taxes. This new lease also provides for an annual lease rate increase adjusted by the cost of living. In May of 2010 the City Council approved a Dove Harbor lease with Dubuque Terminals (Newt) for the southern 6 acres of the former Cargill area. This lease was for 25 years, effective February 2013. The lease rate was set at $50,000 for useable acres, but as agreed, will be reduced to $40,906.23 per acre based on the Flint Hills lease rate. After an initial dredging, this lease also requires the lesser to pay for future dredging and property taxes. Based on the new lease rate, this lease (for 2.86 useable acres) will generate $116,992 of annual revenue plus wharfage fees. DISCUSSION Over the past few years the City has been promoting the City owned river front properties for industrial use that is river dependant. Several companies including Gavilon have evaluated the available sites. Gavilon currently leases two other river front properties from the City. One is an 11 acre site on Commercial Street near the Shot Tower; the other is a 5 acre site on Purina Drive. Gavilon also has proposed to lease approximately 6 acres of the City's salt site (see separate memo). In the attached lease, Gavilon Grain LLC is proposing to lease the approximately 7.87 acres remaining from the former Cargill site. The key elements of this proposed lease agreement includes the following: 1. The term of the lease is 25 years. 2. The lease would begin upon City Council authorization, anticipated to be September, 2013. 3. The final size of the site will be determined by a survey. The approximate size of the site is 7.87 acres. This initial annual lease rate is $41,000 per acre. 4. An additional rent of $180,000 per year will be paid for use of the existing buildings located on this site. 5. The lease payments and additional rent may be adjusted up to 3% annually at the City's discretion. 6. Gavilon will pay a wharfage fee of $.33 per ton for all inbound cargo, unless the cargo is for the City. 7. Gavilon will invest $2.5 million on improvements to the site. 8. Gavilon will pay for maintenance of the rail spur. This cost will be prorated with other industries utilizing the rail spur. 9. Gavilon will be responsible for property taxes. 10. Gavilon will be responsible for required landscaping improvements including the placement of 3 lighted flag poles. The lesser will provide the official City flag for one of these poles. 11. Within the first three years of the lease, the City will dredge Dove Harbor, from that point forward Gavilon is responsible for dredging. 12. Upon termination of the lease, Gavilon shall retain ownership of trade fixtures (i.e. conveyors and loading racks), while site improvements (buildings, railroad spurs, docks and dolphins) remain property of the City. Additional terms and conditions of the lease of the property are included within the attached Lease Agreement. RECOMMENDATION Because the property is an urban renewal district, Iowa law requires a special competitive disposition process to dispose of the property described in the attached Resolution. I recommend that the City Council authorize a 30 day public notice on the competitive disposition of approximately 7.87 acre site in Dove Harbor. This action supports the Council's objectives to develop annual revenue sources in lieu of property taxes and to assist local business and industry. ACTION STEP The action step for the City Council is to adopt the attached Resolution. F: \USERS \Econ Dev \Cargill -North American - Peavey - Gavilon \Gavilon \Lease\2013 \Dove Harbor \20130628 Lease memo.docx Prepared by: Barry A. Lindahl 300 Main Street Dubuque IA 52001 563 583 -4113 OFFICIAL NOTICE RESOLUTION NO. 199 -13 RESOLUTION (1) APPROVING THE MINIMUM REQUIREMENTS, COMPETITIVE CRITERIA, AND OFFERING PROCEDURES FOR THE DEVELOPMENT AND THE LEASE OF CERTAIN REAL PROPERTY AND IMPROVEMENTS IN THE GREATER DOWNTOWN URBAN RENEWAL DISTRICT; (2) DETERMINING THAT THE LEASE SUBMITTED BY GAVILON GRAIN, LLC SATISFIES THE OFFERING REQUIREMENTS WITH RESPECT TO THE REAL PROPERTY AND IMPROVEMENTS AND DECLARING THE INTENT OF THE CITY COUNCIL TO APPROVE THE LEASE WITH GAVILON GRAIN, LLC IN THE EVENT THAT NO COMPETING PROPOSALS ARE SUBMITTED; AND (3) SOLICITING COMPETING PROPOSALS. Whereas, the City Council of Dubuque, Iowa, did on June 3, 2013 adopt an Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District ( "the Plan ") for the Urban Renewal Area described therein; and Whereas, the Plan provides, among other things, for the disposition of properties for private development purposes as a proposed economic development action; and Whereas, Gavilon Grain, LLC ( "Lessee ") has submitted to the City a proposal for the leasing of certain real property hereinafter described for the operation and management of a portion of the Dove Harbor area as described therein ( "the Lease Agreement "), together with the request that this property be made available for lease as rapidly as possible; and Whereas, in order to establish reasonably competitive bidding procedures for the disposition of the property in accordance with the statutory requirements of Iowa Code Chapter 403, specifically, Section 403.8, and to assure that the City extends a full and fair opportunity to all developers interested in submitting a proposal, a summary of submission requirements and minimum requirements and competitive criteria for the property offering is included herein; and 1 Whereas, said Developer has tendered the Lease Agreement with the City, attached hereto as Exhibit "A "; and Whereas, to recognize both the firm proposal for lease of the real property and improvements already received by the City, as described above, and to give full and fair opportunity to other developers interested in submitting a proposal for the use of the property, this Council should by this Resolution: 1) Set the fair market value of the real property for uses in accordance with the Plan; 2) Approve the minimum requirements and competitive criteria included herein; 3) Approve as to form the Lease Agreement attached hereto as Exhibit "A "; 4) Set a date for receipt of competing proposals and the opening thereof; 5) Declare that the proposal submitted by Lessee satisfies the minimum requirements of the offering, and that in the event no other qualified proposal is timely submitted, that the City Council intends to approve such proposal and authorize the City Manager to sign the Lease Agreement; and direct publication of notice of said intent; 6) Approve and direct publication of a notice to advise any other person of the opportunity to compete for lease of the real property on the terms and conditions set forth herein; and 7) Declare that in the event another qualified proposal is timely submitted and accepted, another and future notice will be published on the intent of the City to enter into the resulting contract, as required by law; and Whereas, the City Council believes it is in the best interest of the City and the Plan to act as expeditiously as possible to lease the real property as set forth herein. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the real property shown on Exhibit "B" attached hereto located in Dove Harbor ( "the Property ") shall be offered for lease in accordance with the terms and conditions contained in this Resolution. 2 Section 2. That it is hereby determined that in order to qualify for consideration for selection, any person must submit a proposal which meets these minimum requirements: a) Contains an agreement to lease the Property at not less than fair market value established herein; b) Contains a commitment to lease approximately 7.87 acres in Dove Harbor for uses allowed in a Heavy - Industrial Zoning classification; c) Sets out or provides to the satisfaction of the City Council the experience of the principals and key staff who are directly engaged in the performance of contract obligations in carrying out projects of similar scale and character; and d) Meets, at a minimum, the terms and conditions of the Lease Agreement submitted by the Developer including an agreement to invest not less than $2,500,000. Section 3. That the Lease Agreement by and between the City and the Lessee be and is hereby approved as to form for the purposes hereinafter stated. Section 4. That for the purpose of defining the offering of the Property site for lease, said Lease Agreement shall be deemed to be illustrative of the terms acceptable to the City with respect to: a) Annual lease payments; b) Construction of leasehold improvements; c) Lessee obligations; and d) General terms and conditions. Section 5. That the Lease Agreement submitted by the Lessee satisfies the requirements of this offering and, in the event that no other qualified proposals are timely submitted, that the City Council intends to accept and approve the Lease Agreement. Section 6. That it is hereby determined that the Lessee possesses the qualifications, financial resources and legal ability necessary to lease the Property and to manage and operate the site in the manner proposed by this offering in accordance with the Plan. 3 Section 7. That the annual lease payments for the site offered by the Lessee are hereby found and determined to be the fair market value of the leasehold interest being conveyed. Section 8. That the City Clerk shall receive and retain for public examination the attached Lease Agreement submitted by the Lessee and, in the event no other qualified proposals are timely submitted, shall resubmit the Lease Agreement to the City Council for final approval and execution upon expiration of the notice hereinafter prescribed. Section 9. That the action of the City Council be considered to be and does hereby constitute notice to all concerned of the intention of this Council, in the event that no other qualified proposals are timely submitted, to accept the proposal of the Developer to lease the Property and to approve the Lease Agreement by and between City and Lessee. Section 10. That the official notice of this offering and of the intent of the City, in the event no other qualified proposals are timely submitted, to approve the Lease Agreement, shall be a true copy of this Resolution, but without the attachments referred to herein. Section 11. That the City Clerk is authorized and directed to secure immediate publication of said official notice in the Telegraph Herald a newspaper having a general circulation in the community, by publication of the text of this Resolution without attachments on or before the 5th day of July, 2013. Section 12. That written proposals for the lease of the Property will be received by the City Clerk at or before 10:00 a.m., August 5, 2013 in the Office of the City Clerk, located on the first floor at City Hall, 50 West 13th Street, Dubuque, Iowa 52001. Each proposal will be opened at the hour of 10:00 a.m. in City Hall, Dubuque, Iowa on August 5, 2013. Said proposals will then be presented to the City Council at 6:30 p.m., August 5, 2013, at a meeting to be held in the City Council Chambers, Historic Federal Building at 350 West 6th Street, Dubuque, Iowa. Section 13. That such offering shall be in substantial conformance with the provisions of Iowa Code Section 403.8, requiring reasonable competitive bidding procedures as are hereby prescribed, which method is hereby determined to be the appropriate method for development of the Property. Section 14. That the required documents for the submission of a proposal shall be in substantial conformity with the provisions of this Resolution. Section 15. That the City Clerk is hereby nominated and appointed as the agent of the City of Dubuque, Iowa to receive proposals for the lease of the Property on that date and according to the procedure hereinabove specified for receipt of such proposals and to proceed at such time to formally acknowledge receipt of each of such proposal 4 by noting the receipt of same in the Minutes of the Council; that the City Manager is hereby authorized and directed to make preliminary analysis of each such proposal for compliance with the minimum requirements established by this Council hereinabove. For each proposal that satisfies these requirements, the City Council shall judge the strength of the proposal by the competitive criteria established hereinabove. The City Council shall then make the final evaluation and selection of the proposals. Section 16. Each proposal submitted which satisfies the foregoing minimum requirements, as determined by the City Manager, shall be reviewed on the basis of the strength of such proposal under the following Competitive Criteria: Quality of the Proposed Development: (1) The total cost of the project. (2) The types of materials to be used in the proposed improvements. (3) Overall project amenities. Architectural Design of the Proposed Development: (1) The compatibility of the design with adjacent structures, vistas, pedestrian traffic, vehicular activities, and future development of adjacent properties. (2) The functional design of the site, the structures, and all public spaces. (3) The aesthetic quality of the development and its sensitivity to the use and future development of adjacent properties. (4) The type, size and arrangement of facades or signage along each street frontage. Economic Feasibility of the Proposed Development: (1) The economic return to the City provided by the proposed development, including but not limited to, the amount of lease revenue generated, the property and sales taxes wharfage fees generated, the number of jobs provided, and the encouragement of related development in the area. (2) The ability of the prospective developer to finance and complete the project as proposed. 5 (3) The financial impact of the proposed development upon the City's operating budget and capital improvement plan, particularly as it relates to the construction and maintenance of any required public improvements. Section 17. If, and only if, competing proposals are received and determined by the Council to meet the minimum requirements described herein, the Lessee shall be allowed to amend its proposal in response thereto and to deliver same to the City Manager, by no later than a date determined by the City Council. In such event, the Council shall schedule a subsequent meeting to be held by the City Manager at which there shall be a bid -off conducted by the City Manager. During such bid -off, each competing bidder shall bid against the other, starting with the second proposal received and continuing until such time as each bidder shall decline to improve its proposal to acquire and redevelop the Property in response to the last bid of the other bidder or bidders. The period of time to be allowed for such bid -off shall be determined by the City Manager. The rules of such bid -off shall be as determined by the City Manager at or before such bid -off period and shall be absolute. Section 18. That in the event another qualified proposal is timely submitted and accepted by the City, another and further notice shall be published of the intent of the City of Dubuque, Iowa, to enter into the resulting agreement, as required by law. Passed, approved and adopted this 1st day of July, 2013. Attest: Kevi F'rnstahl, City Clerk 6 49,� Roy D.$uol, Mayor' Whereas, the Plan provides, among other things, for the disposi- tion- of properties for private development: A‘purpos4s as a pro- posed economic devel- opment action; and Whereas, Gavilon Grain, LLC ( "Lessee ") has submitted to the City a proposal for the leasing of certain real property hereinafter described for the oper- ation and management of a portion of the Dove Harbor area as descri- bed therein ( "the Lease Agreement "), together with the request that this property be made available for lease as rapidly as possible; Whereas, in order to establish reasonably competitive bidding procedures for the dis- position of the proper- ty in accordance with the statutory ments of Iowa Code Chapter 403, specifical- ly, Section 403.8, and to assure that the City ex- tends a full and fair op- portunity to all devel- opers interested: in submitting a proposal, a summary of submis- sion requirements, and minimum,requirements and competitive crite- ria for the property of- fering is included here - in; and Whereas, said Devel- oper has tendered the Lease Agreement, with the City, attached hereto as Exhibit "A "; and Whereas, to recognize both the firm proposal for lease of the real property and improve; ments already .received by the City, as descri- bed: above, and to give full and fair opportuni- ty to other developers interested in - submit- ting, a proposal for the use of the property, this Council should by this Resolution: 1) Set the fair market value of the real prop- erty for uses in accord- ance with the Plan; 2) Approve the mini- mum requirements and competitive criteria in- cluded herein; 3) Approve as to form the . Lease Agreement attached hereto as Ex- hibit "A"; 4) Set a date for re- ceipt of competing pro- posals and the opening thereof; 5) Declare that the proposal submitted by Lessee satisfies the minimum requirements ,of the offering, and that in the event no other qualified propos- al is timely submitted, that the City Council intends to approve such proposal and au -. thorize the City Manag- er to sign the Lease Agreement; and direct publication of notice of said intent; 6) Approve and direct publication of a notice to advise any other person of the opportu- nity to compete for lease of the real prop- erty on the terms and conditions set forth herein; and 7) Declare that in the event another qualified OFFICIAL NOTICE • RESOLUTION NO.199 -13 RESOLUTION (1) AP- PROVING THE MINI- MUM REQUIRE- MENTS, COMPETI- TIVE CRITERIA, AND OFFERING PROCE- DURES FOR THE .DE- VELOPMENT AND THE LEASE OF CER- TAIN REAL PROPER- TY AND IMPROVE- MENTS IN THE GREATER DOWN- TOWN URBAN RE- NEWAL DISTRICT; (2) DETERMINING THAT THE LEASE SUBMIT- TED BY GAVILON GRAIN, LLC SATIS- FIES THE OFFERING REQUIREMENTS WITH RESPECT TO THE REAL PROPERTY AND IMPROVEMENTS AND DECLARING THE INTENT OF THE CITY COUNCIL TO AP- PROVE THE LEASE WITH GAVILON GRAIN, LLC IN THE EVENT THAT NO COMPETING PRO- POSALS ARE SUBMIT- TED; AND (3) SOLIC- ITING COMPETING PROPOSALS. Whereas, the City Council of Dubuque, Io- wa, did on June 3, 2013 adopt an Amended and Restated Urban Renew- al Plan for the Greater ' Downtown Urban Re- newal District ('the Plan ") for the Urban Renewal Area descri- bed therein; and proposal is timely sub- mitted and accepted, another and future no- tice will be published on the intent of the City to -enter -into the resulting contract, as required by law; and Whereas, the City Council beliieves,it is in the best interest of the City and the Plan to as expeditiously as possible to lease the real property as set forth herein. NOW, THEREFORE, BE 1T RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, 10- WA: Section 1. That the re- al property shown on Exhibit "B" attached hereto located in Dove Harbor, i ("the Proper- ty ") shall be offered for lease in accordance with the terms and conditions' contained in this Resolution. Section 2. That it is hereby determined that in order to qualify for consideration for selection, any person must submit a propos- al which meets these minimum requirements: a) Contains an agree- ment to lease the Prop- eft at,not less than fair market value es- tablished herein; b) Contains .a commit - ment to lease apprcxi- mately 7.87 acres in Dove Harbor for uses allowed „in .a Heavy - Industrial Zoning. clas- sification; c) Sets out or pro - vides to the satisfac- tion of the City Council .the experience of, the principals and key staff who are directly en- gaged in the, perform- ance of, contract obli- gations in carrying out projects of similar scale and character; and d) Meets, at a mini- mumk the terms and conditions of the Lease Agreement , submitted by the Developer in- cluding an agreement to invest not less than $2,500,000. Section 3. That the Lease Agreement by and between the City and the Lessee be and is hereby approved as to form for the purpos- es hereinafter stated Section 4. That for the purpose of defining the offering of the Proper- ty site for lease, said Lease Agreement shall be deemed to be illus- trative of the terms ac- ceptable to the City with respect to: a) Annual lease pay- ments; b) Construction of leasehold improvements; c) Lessee obligations; and d) General terms and conditions. Section 5. That the Lease Agreement sub - mitted by the Lessee satisfies the require- ments of this offering and, in the event that no other qualified pro- posals are timely sub- mitted, that the City Council intends to ac- cept and approve the Lease Agreement. Section 6. That it is hereby determined that the, Lessee Os= sesses the qualifica- tions, financial resour- ces and legal ability necessary to lease the ,Property and to man- age and operate the site in the manner pro - posed by this offering in accordance with the Plan. Section 7. That the an- ' nual lease payments for the site offered by the Lessee are hereby found and determined to be the fair market value of the leasehold interest - being, con- veyed. Section 8. That the City Clerk shall receive and retain for public examination the at- tached. Lease Agree- ment submitted by the Lessee and, in the event no other quali- fied , proposals are timely submitted, shall resubmit the Lease Agreement to the City Council for final appro- val and execution upon. expiration of the notice h ereinafterprescribed. Section a. That the ac- tion of the City Council be considered to be and does hereby con - stitute notice to all concerned of the inten- tion of this Council, in the event that no other qualified proposals are timely submitted, to accept the proposal of the Developer.to lease the Property and to ap- prove the Lease Agree- ment by and between City and. Lessee. Section 10. That the official notice of this offering and of the in- tent of the City, in the event no other quali- .fied proposals are timely submitted, to .approve the Lease Agreement, shall be a true copy of this Reso- lution, but without the attachments referred to herein. Section 11. That the City Clerk is authorized and directed to secure immediate publication of said official notice in the Telegraph Herald, a newspaper having a general circulation in the community, by publication of the text of this Resolution with- out attachments on or before the 5th day of July, 2013. • Section 12. That writ- ten proposals for the lease of the Property will be received by the City Clerk at or before 10:00 a-m., August 5, 2013 in the Office of the City Clerk, located on the first floor at City Hall, 50 West 13th Street, Dubuque, Iowa 52001. Each proposal will be opened at the hour of 10:00 am. in City Hall, Dubuque, lo- wa on August 5, 2013. Said proposals will then be presented to the City Council at 6:30 p.m., August 5, 2013, at a meeting to be held in the City Council Cham- bers, Historic Federal Building at 350 West 6th Street, Dubuque, Iowa. Section 13. That such offering shall be in substantial conform- ance with the provi- sions of Iowa Code STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: July 05, 2013, and for which the charge is $165.31. Subscribed to before me a Notary Public in and for Dubuque County, Iowa, this /I5 day o i � _ , 20 a Notary Public in and for Dubuque County, Iowa. MARY K.WESTERMEYER CorrimIe;Ioil Number 154685 posers ror me lease or the Property on that date and according to the procedure hereina - boye specified for re- ceiptof such proposals and to proceed at such time to formally ac- knowledge receipt of each of such proposal by noting the receipt of same in the Minutes of the Council; that the City Manager is hereby authorized and direct- ed to make preliminary 'analysis of each such proposal for compli- ance with the mini- mum requirements es- tablished by this Coun- cil hereinabove. For each proposal that sat- isfies these require- ments, the City Council shall judge the strength of the propos- al by the competitive criteria established hereinabove. The City Council shall then make the final evalua- tion and selection of the proposals. Section 16. Each pro- posal submitted which satisfies the - foregoing minimum require- ments, as determined by the City Manager, shall be reviewed on the basis of the strength of such pro- posal under the follow- ing Competitive Crite- ria: Quality of the Pro- ' posed Development (1) The total cost of the project. (2) The types of mate- rials to be used in the proposed improvements. (3) Overall project amenities. Architectural Design of the Proposed Devel- opment: (1) The compatibility of the design with ad- jacent structures, vis- tas, pedestrian traffic, vehicular activities, and future develop- ment of adjacent prop- erties. ■ (2) The functional de- sign of the site, the structures, and all pub- lic spaces. (3) The aesthetic quality of the develop- ment and its sensitivity to the use and future development of adja- cent properties. (4) The type, size and arrangement of fa- cades or signage along each street frontage. Economic Feasibility pact or the proposes development upon the City's operating budget and capital improve- ment plan, particularly as it relates to the con- struction and mainte- nance of any ,required public improvements. Section 17. If, and on- ly if, competing pro - posals are received and determined by the Council to meet the minimum requirements described herein, the Lessee shall be allowed to amend its proposal in response thereto and to deliver same to the City Manager, by no later than a date de- termined by the City Council. In such event, the Council shall schedule a subsequent meeting to be held by the City Manager at which there shall be a bid -off conducted by the City Manager. Dur- ing such bid -off, each competing bidder shall bid against the other, starting with the sec- ond proposal received and continuing until such time as each bid - der shall decline to im- prove its proposal to acquire and redevelop the Property in re- sponse to the last bid of the other bidder or bidders. The period of time to be allowed for such bid -off shall be determined by the City Manager. The rules of such bid-off shall be as determined by the City Manager at or before such bid -off period and shall be absolute. Section 18. That in the event another qualified proposal is timely sub- mitted and accepted by the City, another and further notice shall be published of the in- tent of the City of Du- buque, Iowa, to enter into the resulting agreement, as required by law. Passed, approved and adopted this 1st day of July, 2013. Roy D. Buol, Mayor Attest Kevin Firnstahl, City Clerk It 7/5 LEASE AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA, AND GAVILON GRAIN, LLC DOVE HARBOR LEASE This Lease Agreement (the "Lease ") dated for reference purposes this day of , 2013, between the City of Dubuque, Iowa, an Iowa municipal corporation ( "Lessor "), and Gavilon Grain, LLC, a Delaware limited liability company ( "Lessee "). SECTION 1. DEMISE AND TERM. 1.1. In consideration of the rents hereinafter reserved and the terms, covenants, conditions and agreements set forth in this Lease, Lessor hereby leases to Lessee the real property described in Exhibit A attached hereto and made a part of this Lease (approximately 7.87 acres) subject to final determination by surveying and platting, at Lessor's sole expense, and as shown on Exhibit B, attached hereto, together with any and all easements and appurtenances thereto and subject to any easements and restrictions of record, including but not limited to those indicated in Exhibit E (the "Demised Premises "), to have and to hold for an initial term commencing as of the 1st day of September, 2013, or such earlier date as the parties agree in writing, and ending at midnight on the 31st day of August, 2038 (the Initial Term), subject to all of the terms, covenants, conditions and agreements contained herein. 1.2. Lessee agrees to cooperate with Lessor in surveying and platting the Demised Premises and amending this Lease to include the final legal description; provided, however, that Lessee shall not be required to pay for the cost of any such surveying and platting. 1.3. Lessor hereby grants Lessee a nonexclusive easement for ingress and egress to the Demised Premises over and across the Private Road shown on Exhibit B, attached hereto. Lessor shall have no obligation for any maintenance for the easement area. 1.4. Use of Premises. Lessee acknowledges that the Demised Premises is currently zoned HI Heavy Industrial. Notwithstanding such zoning, Lessee agrees that the Demises Premises shall not be used for any of the following uses: Slaughterhouses or stockyards; Manufacture or processing of the following materials: ammonia or chlorine; Manufacture of acid, lime or lime products, and detergent; Gavilon Dove Harbor Long Term Lease 062113baI Sanitary landfills; Sewage treatment plants; Crematoriums; reduction plants; foundries, forges or smelters; and Junk yards, salvage yards. 1.5. Lessee further agrees that the Demised Premises shall be used only for the handling of bulk commodities (grain, fertilizer, salt, whole cotton seed) and or other bulk commodities, steel rebar and dried distillers grains with solubles, and no other purposes without the prior written consent of Lessor, which consent shall not be unreasonably withheld. 1.6. Lessor and Lessee will enter into a separate Lease Agreement for the Demised Premises from July 1, 2013 until this Lease is approved by both parties. SECTION 2. RENT, TAXES, AND OTHER PAYMENTS 2.1. Rent. (1) Lessee shall pay Lessor, in addition to taxes, fees (including but not limited to storm water fees), rates, charges, levies, assessments, and all other charges required to be paid under this Lease by Lessee, rent for the first year of the Term in the amount of $41,000.00 per acre in twelve equal monthly payments commencing on the 1st day of September, 2013, and on the first day of each month thereafter. (2) As additional rent, Lessee shall pay for the use of the Improvements on the Demised Premises shown on Exhibit D $180,000 in twelve equal monthly payments of $15,000 commencing on the 1st day of September, 2013, and on the first day of each month thereafter. (3) At Lessor's discretion, rent described in (1) and (2) for each successive year of the Lease Term may be increased effective September 1 by up to three percent (3 %) per year. 2.2. Wharfage. (1) Lessee shall pay Lessor $0.33 per ton for inbound cargo transferred to the Demised Premises by water, rail or motor vehicle for every ton received at the Demised Premises. (2) Tonnage reports shall be provided to Lessor by January 15 of each year for the preceding calendar year with the payment for each year due by no later than February 1 immediately following the end of each such year. SECTION 3. TITLE TO IMPROVEMENTS AND TRADE FIXTURES 2 3.1. Trade Fixtures. (1) For the purposes of this Lease, "Trade Fixtures" shall mean the personal property and equipment located on the Demised Premises used in Lessee's business and all structures above ground, including silos and conveyors, but not any improvements described in Section 3.2. (2) Title to Lessee's Trade Fixtures is and shall be the sole and exclusive property of Lessee during the term of this Lease and shall remain the sole and exclusive property of Lessee after the expiration or termination of this Lease, for whatever reason. Lessor acknowledges and understands that it shall have no right, title or interest in or to Lessee's Trade Fixtures either during the term of this Lease, or thereafter (except as hereinafter provided). Lessor acknowledges and agrees that Lessee shall have the right to encumber, sell, or hypothecate Lessee's Trade Fixtures, to remove them from the Demised Premises, or to otherwise deal with all or any portion of such Lessee's Trade Fixtures, at Lessee's sole discretion. Upon ten (10) days' prior written notice to Lessor, Lessor shall execute and deliver to Lessee a certificate in recordable form prepared by Lessee stating that Lessor has no interest or right in or to Lessee's Trade Fixtures, as well as any other or further document which Lessee may reasonably request from Lessor. If Lessee elects to remove its Trade Fixtures, Lessee shall remove the Trade Fixtures not more than thirty (30) days after the expiration of this Lease Agreement; any Trade Fixture remaining on the Demised Premises after such thirty -day period become the property of Lessor. 3.2. Improvements. (1) Lessor -owned improvements on the Demised Premises as of the commencement date of this Lease are the following: office and maintenance buildings, storage buildings, railroad spurs, dock, and dolphins (collectively, the "Lessor Improvements "). (2) On delivery of possession of the Demised Premises to Lessee, Lessee shall not construct or deconstruct any Lessor Improvements on the Demised Premises without the prior written consent of Lessor, such consent not to be unreasonably withheld. Lessee shall compensate Lessor for any deconstructed Lessor Improvements at fair market value, except for deconstruction or demolition occasioned by those improvements described in Section 3.2(4). (3) Lessee shall construct on the Demised Premises not later than December 31, 2016, new improvements or repairs to the existing Lessor Improvements at a cost of not less than $2.5 Million as follows (collectively, the "Lessee Improvements "): The invested capital will be deployed to bring existing equipment and structures up to terminal operating condition. 3 (4) Upon any termination of this Lease, by reason of any cause whatsoever, if any new Improvements or Improvements existing at the time of the execution of this Lease or any part thereof shall then be on the Demised Premises, Lessor may require Lessee at no cost to Lessor to remove any or all of such Improvements by delivering notice to Lessee not later than one hundred eighty days (180) prior to the expiration of the Lease, in which event Lessee shall remove the Improvements within thirty (30) days after the expiration of this Lease Agreement. Title to all existing and new Improvements is and shall be at all times vested in Lessor. No further deed or other instrument shall be necessary to confirm the vesting in Lessor of title to the Improvements. (5) Plans for Construction of Improvements. Plan and specifications with respect to the construction of the Improvements thereon (the Construction Plans) shall be in conformity with the Urban Renewal Plan, this Agreement, and all applicable state and local laws and regulations, including but not limited to any covenants, conditions, restrictions, reservations, easements, liens and charges, applicable to the Demised Premises, in the records of Dubuque County, Iowa. Lessee shall submit to Lessor, for approval by Lessor, plans, drawings, specifications, and related documents with respect to the improvements to be constructed by Lessee. All work with respect to the Improvements shall be in substantial conformity with the Construction Plans approved by Lessor. (6) Upon request of Lessor, Lessee shall provide Lessor with evidence satisfactory to Lessor showing that the Lessee improvements in this Section 3.2 have been completed. 3.3. Landscaping. (1) Reasonable material landscaping or aesthetic improvements will be made by the Lessee as mutually agreed upon by the Lessor and Lessee. Lessee shall maintain all landscaping or aesthetic improvements to the reasonable satisfaction of Lessor. (2) No other fence shall be installed on the Demised Premises without the approval of Lessor, which consent shall not be unreasonably withheld. (3) Lessee shall not later than December 31, 2014, install improvements along approximately 650 lineal feet of Kerper Boulevard substantially similar to those shown on Exhibit C. 3.4. Flagpoles. Lessee shall construct on the Demised Premises in a location approved by Lessor not later than one year after the commencement of this Lease not less than three (3) 35 -foot lighted flag poles, one of which shall display a minimum 5 foot by 8 foot official flag of the City of Dubuque, which official flag Lessor shall provide to Lessee. 4 3.5. Railroad Extensions. (1) Lessee shall have the non - exclusive right to use the railroad track located along East 11th Street and Kerper Boulevard and adjacent to the Demised Premises (the "Lessor Track ") for storage. Lessee agrees to pay a proportionate share of the costs of maintenance, repair and upgrades to the Lessor Track with Lessor and /or third parties in an amount commensurate with Lessee's annual usage of the Lessor Track. Lessee's annual usage shall be determined based upon records maintained by Lessee and the railroad and shall be calculated on a per rail car basis. For any period during the Term of this Lease that Lessee does not use the Lessor Track, Lessee shall not be responsible for payment of any costs of maintenance, repair or upgrades to the Lessor Track. (2) For any railroad tracks on the Demised Premises existing as of the commencement of this Lease and in the event Lessee installs any track to serve the Demised Premises (together, the "Demised Premises" Tracks "), Lessee at its expense shall maintain the Demises Premises Tracks as will permit Lessee, Lessor or any other lessee of Lessor, to connect thereto for the purpose of serving proposed tenants occupying land in the vicinity of the Demised Premises; provided, however, that (i) use of the Demised Premises Tracks by any third parties pursuant to this Section 3.5(2) shall not interfere with Lessee's use of the Demised Premises Tracks, (ii) Lessee shall retain first priority to use the Demised Premises Tracks and any other track located on the Demised Premises and (iii) Lessor shall defend, indemnify and hold harmless Lessee from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including reasonable attorney fees) imposed upon, incurred by or asserted against Lessee in connection with any third party lessor's use of the Demised Premises Tracks. The parties hereto acknowledge and agree that this Section 3.5 is part of the consideration for this Lease, and Lessee agrees to cooperate with said parties to make such connections to the track of Lessee. In the event that Lessor should lease additional property to tenant or tenants requiring connection to a track serving Lessee's property, Lessee shall be entitled to charge such tenant making connection to such track a proportionate cost for the track maintenance, based upon the annual usage by the tenant of Lessee's track calculated on a per railroad car basis. Such costs shall be limited to that part of Lessee's track used by such other tenant or tenants. (3) Lessee, when requested by the Lessor, shall remove the railroad tracks for the purpose of closing the floodwall gates for flood control or maintenance. The cost of removal and replacement of the railroad tracks shall be at the expense of the Lessee SECTION 4. ENCUMBRANCE OF LESSEE'S LEASEHOLD INTEREST 4.1. Lessee's Right to Encumber Leasehold Interest. Lessee may encumber by 5 mortgage, deed of trust or other proper instrument, its leasehold interest and estate in the Demised Premises, together with all Lessor Improvements or Lessee Improvements on the Demised Premises, as security for any indebtedness of Lessee, provided that no such encumbrance shall extend beyond the term of this Lease. Lessee shall provide prompt written notice to Lessor of any such encumbrance together with a copy of such encumbrance. In the event of any judicial or nonjudicial foreclosure under any mortgage, deed of trust or other similar instrument made by Lessee covering its leasehold interest in the Demised Premises, Lessor shall, upon such foreclosure or sale, recognize the purchaser thereunder as lessee under this Lease, provided such purchaser expressly agrees in writing to be bound by the terms of this Lease. 4.2. Notice to Holder of Encumbrance; Right of Holder to Cure Lessee's Default. If Lessee shall encumber its leasehold interest and estate in the Demised Premises and if Lessee, or the holder of the indebtedness, its successors and /or assigns (the Holder) secured by the encumbrance shall give notice to Lessor within 30 days thereafter of the existence of the encumbrance and the address of the Holder, then Lessor shall mail or deliver to the Holder, at such address, a duplicate copy of all notices in writing which Lessor may, from time to time, give or serve on Lessee under and pursuant to the terms and provisions of this Lease. The copies shall be mailed or delivered to the Holder at, or near as possible to, the same time the notices are given to or served on Lessee. The Holder may, at its option, at any time before the rights of Lessee shall be terminated as provided in this Lease, pay any of the rents due under this Lease or pay any taxes and assessments, or do any other act or thing required of Lessee by the terms of this Lease, or do any act or thing that may be necessary and proper to be done in the observance of the covenants and conditions of this Lease or to prevent the termination of this Lease; provided, however, that the doing of any act or thing requiring possession of the Demised Premises shall be subject to the further rights of Holder as set forth in 16.2. All payments so made and all things so done and performed by the Holder shall be effective to prevent a foreclosure of the rights of Lessee thereunder as the same would have been if done and performed by Lessee. SECTION 5. TAXES. 5.1. Lessee agrees to pay as additional rent all property taxes levied or assessed upon the real estate and the improvements to the Demised Premises that become payable during the term hereof and which would become delinquent if not so paid during the term hereof. If any such taxes shall be levied or assessed for any period of time prior to the commencement of the Term or after the expiration thereof, such taxes shall be prorated accordingly. Lessee shall further provide to Lessor official receipts of the appropriate taxing authority or other evidence satisfactory to Lessor evidencing payment thereof. 5.2. During the term of this Lease, Lessee further agrees to pay all other taxes, fees (including but not limited to storm water fees), rates, charges, levies and assessments, general and special, of every name, nature and kind, whether now known to the law or hereafter created which may be taxed, charged, assessed, levied or imposed upon said 6 real estate and which become payable during the term hereof and which would become delinquent if not so paid during the term hereof, any buildings or improvements thereon which may be taxed, charged, assessed, levied or imposed upon the leasehold estate hereby created and upon the reversionary estate in said real estate during the term hereof and which become payable during the term hereof and which would become delinquent if not so paid during the term hereof, and all such other taxes, fees, rates, charges, levies and assessments shall be paid by Lessee as they become due and before they become delinquent during the term hereof. If any such taxes, fees, rates, charges, levies and assessments shall be levied or assessed against any period of time prior to the commencement of the Term or after the expiration thereof, such taxes, fees, rates, charges, levies and assessments shall be prorated accordingly. 5.3. Lessee agrees to timely pay all taxes, fees, assessments or other public charges levied or assessed by lawful authority (but reasonably preserving Lessee's rights of appeal) against its personal property on the premises, during the term of this Lease. 5.4. Nothing herein shall require Lessee to pay any of Lessor's income taxes, surtaxes, excess profit taxes or any taxes on the rents reserved to Lessor hereunder. 5.5. Lessee shall at all times have the right to contest in good faith, in any proper proceedings, in the name of Lessor if necessary, the payment or satisfaction of any such taxes, fees, assessments, rates, charges or levies so agreed to be paid by Lessee, if the validity thereof, or the right to assess or levy the same against or collect the same from said Demised Premises, Lessor Improvements or Lessee Improvements, shall be disputed. Upon the conclusion of any such suit or proceedings, or not less than three (3) months prior to the date when the right to redeem therefrom expires, whichever will be the earlier, Lessee shall promptly pay and satisfy such disputed tax, fee, assessment or other charge as finally determined, together with all expenses, costs and attorneys' fees whatsoever incurred in connection therewith. SECTION 6. REPAIRS. 6.1. Lessee shall at all times during the term of this Lease, at Lessee's own cost and expense, keep the Demised Premises and the Lessor Improvements and Lessee Improvements thereon, and all sidewalks, curbs, and all appurtenances to the Demised Premises, in good order, condition and repair, casualties and ordinary wear and tear excepted and to a condition reasonably satisfactory to Lessor. Lessee shall keep the Demised Premises in such condition as may be required by law and by the terms of the insurance policies furnished pursuant to this Lease, whether or not such repair shall be interior or exterior, and whether or not such repair shall be of a structural nature. Upon reasonable notice to Lessee, Lessor may, at its discretion and at its cost, conduct an annual inspection of the Demised Premises to determine Lessee's compliance with this Section 6. 6.2. Lessor shall have the right to require Lessee upon written notice to repair or remove any structure on the Demised Premises which Lessor determines does not 7 comply with the requirements of this Section, and Lessee shall repair or remove, as the notice may require, any such structure within one - hundred twenty (120) days after receipt of such notice. 6.3 Lessor shall have no obligation to Lessee for any maintenance expense of any kind on the Demised Premises, including but not limited to, private roads or railroad tracks. However, Lessor shall, at Lessor's expense, provide routine maintenance and snow removal for Koch Court. 6.4 Within the first three (3) years of this Lease, Lessor shall perform an initial dredging at its cost and expense. Lessee agrees to perform all maintenance dredging necessary to serve the Demised Premises. SECTION 7. COMPLIANCE WITH LAW. 7.1. During the term of this Lease, Lessee shall comply with all local, state and federal laws applicable to Lessee's use of the Demised Premises, including but not limited to the Americans with Disabilities Act and the Iowa Smoke Free Air Act. 7.2. Lessee shall not commit waste on the Demised Premises except as necessary for its business purposes, and Lessee shall be liable for any damages to or destruction of any buildings or Lessor Improvements on the Demised Premises resulting from waste. Lessee shall not remove any Lessor Improvements on the Demised Premises except as allowed pursuant to this Lease. All trash, garbage and refuse of any kind shall be promptly removed from the Demised Premises by Lessee. SECTION 8. ALTERATIONS. Lessee shall not, without Lessor's prior written consent, which consent shall not be unreasonably withheld, make any alteration, addition, or modification to any Lessor Improvement on the Demised Premises that exceeds One Hundred Thousand Dollars ($100,000.00) in cost. Any alteration, addition, or modification of less than One Hundred Thousand ($100,000.00) Dollars shall not require Lessor's consent. SECTION 9. USE OF DEMISED PREMISES. 9.1. Lessee shall not knowingly use or allow the Demised Premises or any buildings or Lessor Improvements or Lessee Improvements thereon or any appurtenances thereto, to be used or occupied for any unlawful purpose or in violation of any certificate of occupancy. Lessee shall not suffer any act to be done or any condition to exist within the Demised Premises or in any Lessor Improvement or Lessee Improvement thereon, or permit any article to be brought therein, which is dangerous, unless safeguarded as required by law, or which, in law, constitute a nuisance, public or private, or which may make void or voidable any insurance in force with respect thereto. 9.2. Any vessels or barges docked along the Demised Premises for purposes other than active loading /unloading shall be no more than 2 vessels or barges in width away 8 from the dock, shall at all times be maintained in a good state of repair, and shall not be used for the storage of junk or salvage material. In no event, however, shall any vessels or barges unreasonably interfere with the use of any waterway by other users, nor shall the number of vessels or barges actively loading or unloading exceed 4. 9.3. Lessee hereby grants access to Lessor to the levee and floodwall at all times for Lessor's operations and maintenance of the levee and floodwall. Lessee acknowledges that there is a U.S. Army Corps of Engineers Clear Zone of 20' from the levee and floodwall that must be free from all storage or construction, and Lessee agrees to comply with such free zone requirement at all times. The foregoing notwithstanding, but only to the extent it complies with the rules of the U.S. Army Corps of Engineers, Lessee shall be allowed to maintain the use and placement of the following existing structures: grain storage and loading facility, bulk oil storage tank, equipment maintenance shop and electrical room, rail line and related equipment shed and material loading conveyor. SECTION 10. INSURANCE. 10.1. Lessee shall maintain during the term of this Lease insurance as set forth in the Lessor's standard Insurance Schedule for Lessees of Lessor Property, as such uniform, standardized schedule may from time to time be amended. The current Insurance Schedule is attached to this Lease Agreement as Insurance Schedule A. Lessor shall provide written notice of any amendment to the Insurance Schedule not less than sixty (60) days prior to the effective date of such amendment. 10.2. Upon completion of construction of the Lessee Improvements, Lessee shall maintain, or cause to be maintained, at its cost and expense (and from time to time at the request of Lessor shall furnish proof of insurance as follows): Property insurance against loss and /or damage to Improvements under an insurance policy written on the Special Perils Form in an amount not less than the full insurable replacement value of Improvements, but any such policy may have a deductible amount of not more than $500,000.00. No policy of insurance shall be so written that the proceeds thereof will produce less than the minimum coverage required by the preceding sentence, by reason of co- insurance provisions or otherwise, without the prior consent thereto in writing by Lessor. The term "replacement value" shall mean the actual replacement cost of Improvements (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be determined from time to time at the request of Lessor, but not more frequently than once every three years, and paid for by Lessee. 10.3. All insurance required by this Section shall be taken out and maintained in responsible insurance companies selected by Lessee which are authorized under the laws of the State of Iowa to assume the risks covered thereby or Lessee may at its 9 election self- insure itself pursuant to the aforementioned guidelines. Lessee shall deposit annually by not later than July 1 of each year with Lessor a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Lessee shall furnish Lessor evidence satisfactory to Lessor that the policy has been renewed or replaced by another policy conforming to the provisions of this , or that there is no necessity therefor under the terms hereof. In lieu of separate policies, Lessee may maintain a single policy, or blanket or umbrella policies, or a combination thereof, which provide the total coverage required herein, in which event Lessee shall deposit with Lessor a certificate or certificates of the respective insurers as to the amount of coverage in force upon Improvements, provided, however, the specific limit shall not be impaired. 10.4. Lessee agrees to notify Lessor immediately in the case of damage exceeding $50,000.00 in amount to, or destruction of, Trade Fixtures or Lessee Improvements or any portion thereof resulting from fire or other casualty. Net proceeds of any such insurance ( "Net Proceeds "), shall be paid directly to Lessee, and Lessee shall forthwith repair, reconstruct and restore the Trade Fixtures or Lessee Improvements to substantially the same or an improved condition or value as they existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, or remove such Trade Fixtures or Lessee Improvements whether or not the Net Proceeds of insurance received by Lessee for such purposes are sufficient. Lessee shall apply the Net Proceeds of any insurance relating to such damage received by Lessee to the payment or reimbursement of the costs thereof, subject, however, to the terms of any mortgage encumbering title to the Demised Premises. 10.5. Lessee shall complete the repair; reconstruction and restoration of any railroad spur, docks, or dolphins, whether or not the Net Proceeds of insurance received by Lessee for such purposes are sufficient. SECTION 11. LESSOR'S WARRANTIES AND REPRESENTATIONS 11.1. Lessor's Representation of Good Title. Lessor covenants and warrants that Lessor is lawfully seized in possession of the Demised Premises, and that it has full right and authority to enter into this Lease for the full term hereof, and covenants and agrees that upon paying the rent provided for herein, and upon Lessee's performing the covenants and agreements of this Lease required to be performed by said Lessee, that it will have, hold and enjoy quiet possession of the Demised Premises. Lessor warrants to Lessee that the Demised Premises are properly zoned for the conduct of the operation of Lessee's business. 11.2. Lessor makes no representations or warranties as to the condition, including environmental condition, of the Demised Premises and Lessee accepts the Demised Premises as is. SECTION 12. LESSEE'S WARRANTIES AND REPRESENTATION. 10 12.1. Lessee Compliance With Law. Lessee shall comply with all applicable local, state and federal laws, rules, regulations and permits with regard to the Demised Premises and its use, occupancy and control of the Demised Premises. 12.2. Environmental Matters. (1) Lessee covenants and agrees that Lessor shall have no responsibility for or liability arising from any release of a Hazardous Substance which is caused by or results from Lessee, Lessee's use, occupancy or control of the Demised Premises, except for Lessor Hazardous Substances (any Hazardous Substance which leaches or migrates upon the Demised Premises from any property owned by Lessor). Notwithstanding any other provision of this Lease, Lessee shall not have any responsibility for any Hazardous Substance which leaches or migrates upon the Demised Premises from any adjacent property or any release of a Hazardous Substances onto the Demised Premises which is caused by Lessor or other tenants or lessees of Lessor or which pre- exists the date of this Lease, except as follows: (a) Lessee shall be responsible for known pre- existing releases for which Lessee fails to take due care and adequate precaution and /or for which Lessee's actions or inactions cause a worsening of the release, and (b) Lessee shall provide full cooperation, assistance, and access to Lessor or other parties investigating and /or responding to a threatened or actual release. (2) Lessee covenants and agrees to promptly notify Lessor of any release of Hazardous Substance for which Lessee is responsible under this Section 12.2(1) that exceeds permitted levels as defined by any local, state or federal laws applicable to Lessee's use of the Demised Premises originating after the effective date of this Lease ( "Release ") in, on or about the Demised Premises of which Lessee suspects or has actual knowledge. (3) Lessee covenants and agrees to promptly take any and all necessary and appropriate response to fully address any Release following the advance notice to Lessor required in Section 12.2(2) above. Such response shall include, without limitation, notification to appropriate governmental authorities, as may be required by applicable law. Lessee shall respond to such Release to the full extent required by applicable law; however, in no event shall Lessee allow limitations or restrictions to be placed on the Demised Premises without the written consent of the Lessor. (4) Except as necessary to conduct its operations and use the Demised Premises as detailed in Section 1.6 and 1.7, Lessee covenants and agrees to not manufacture, treat or dispose of Hazardous Substances at the Demised Premises or allow the manufacture, treatment, or disposal of Hazardous Substances on the Demised Premises. Lessee shall use and store on the Demised Premises only those Hazardous Substances as are associated with its regular business activities, and then only as allowed by applicable law. 11 (5) For the purposes of this Lease, "Hazardous Substance" or "Hazardous Substances" means any hazardous or toxic substance, material or waste which is or becomes regulated by any local government, the State of Iowa or the United States Government. It includes, without limitation, any material or substance that is (i) defined as a "hazardous substance" or "hazardous waste" under Chapter 455B, Iowa Code, (ii) petroleum and petroleum products, (iii) asbestos containing materials in any form or condition, (iv) designated as a "hazardous substance" pursuant to 311 of the Federal Water Pollution Control Act (33 U.S.C. § 1321), (v) defined as a "hazardous waste" pursuant to § 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq., (vi) defined as a "hazardous substance" pursuant to § 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.0 § 9601 et seq., or (vii) defined as a "regulated substance" pursuant to Subchapter IX, Solid Waste Disposal Act (Regulation of Underground Storage Tanks), 42 U.S.C. § 6991 et seq.] The term "Hazardous Substance" shall not include any air emissions discharged into the atmosphere as allowed by a duly issued permit from the applicable governmental agency. SECTION 13. INDEMNIFICATION. 13.1. Indemnification of Lessee. To the extent allowed by law, Lessor will defend, indemnify and save harmless Lessee from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) imposed upon or incurred by or asserted against Lessee by reason of (a) any accident, injury to or death of persons or loss of or damage to property occurring on or about the Demised Premises and resulting from any act or omission of Lessor, its agents or employees, (b) any failure on the part of Lessor to perform or comply with any of the terms of this Lease and (c) any breach on the part of Lessor of any warranty or representation contained in Section 11 of this Lease. In case any action, suit or proceeding is brought against Lessee by reason of any such occurrence, Lessor will, at Lessor expense and discretion, either defend such action, suit or proceeding, or cause the same to be defended by counsel approved by Lessee, which approval will not be unreasonably withheld. 13.2. Indemnification of Lessor. Lessee will defend, indemnify and save harmless Lessor from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) imposed upon or incurred by or asserted against Lessor by reason of (a) any accident, injury to or death of persons or loss of or damage to property occurring on or about the Demised Premises during the term of this Lease and resulting from any negligence of Lessee, (b) any failure on the part of Lessee to perform or comply in any material respect with any of the material terms of this Lease, and (c) any material breach on the part of Lessee of any warranty or representation contained in Section 12. In case any action, suit or proceeding is brought against Lessor by reason of such occurrence, Lessee will, at Lessee's expense and discretion, either defend such action, 12 suit or proceeding, or cause the same to be defended by counsel approved by Lessor, which approval will not be unreasonably withheld. 13.3. Survival. The obligations and liabilities under this Section shall survive and continue in full force and effect and shall not be terminated, discharged or released, in whole or in part, irrespective of the termination or expiration of the term of this Lease. SECTION 14. CONDEMNATION. 14.1. Entire Condemnation. If at any time during the term of this Lease all or substantially all of the Demised Premises, the Lessor Improvements or Lessee Improvements thereon shall be taken in the exercise of the power of eminent domain by any sovereign, municipality or other public or private authority, then this Lease shall terminate on the date of vesting of title in such taking and any prepaid rent shall be apportioned as of said date. Substantially all of the Demised Premises, the Lessor Improvements and the Lessee Improvements thereon shall be deemed to have been taken if the remaining portion of the Demised Premises shall not be of sufficient size to permit Lessee, in Lessee's sole discretion, to operate its business thereon in a manner similar to that prior to such taking. 14.2. Allocation of Award. Any award for such taking of all or substantially all of the Demised Premises shall be paid to the parties hereto in accordance with the following: (1) To Lessor, the amount of the award attributable to the Demised Premises, determined as if this Lease was not in effect at the time of such award, excluding therefrom the amount of the award attributable to the Lessee Improvements but not the Lessor Improvements, and all other sums not directly attributable to the value of the Land constituting the Demised Premises; (2) To Lessee, the entire award except that portion allocated to Lessor above. 14.3. Partial Condemnation. (1) If less than all or substantially all of the Demised Premises, the Lessor Improvements or the Lessee Improvements thereon shall be taken in the exercise of the power of eminent domain by any sovereign, municipality or other public or private authority, then Lessee, at its option, may elect to continue this Lease in full force and effect or terminate this Lease. If Lessee shall elect to maintain this Lease in full force and effect, the award for such partial condemnation shall be allocated as provided in 14.2, and Lessee shall proceed with reasonable diligence to carry out any necessary repair and restoration, but only to the extent of the award to Lessee under Section 14.2, so that the remaining Lessor or Lessee Improvements and appurtenances shall constitute a complete structural unit or units which can be operated on an economically feasible basis under the provisions of this Lease. In the event Lessee elects to continue this Lease in full force and effect after a partial condemnation, the Rent 13 shall be reduced in proportion to the value of the area of the Demised Premises taken. (2) Should Lessee elect to terminate this Lease upon a partial condemnation, Lessee shall provide Lessor with written notice of such election within thirty (30) days after the date of vesting of title for such taking. Lessee shall specify in such written notice the date on which this Lease shall terminate, which date shall be not Tess than 60 days nor more than 360 days after delivery of such notice to Lessor (the Termination Date). In the event Lessee terminates this Lease, as provided for in this 14.3, Lessee shall be entitled to the entire award for such partial taking. 14.4 Temporary Taking. If the temporary use of the whole or any part of the Demised Premises, the Lessor Improvements or the Lessee Improvements thereon or the appurtenances thereto shall be taken at any time during the term of this Lease in the exercise of the power of eminent domain by any sovereign, municipality, or other authority, the term of this Lease shall not be reduced or affected in any way, and Lessee shall continue to pay in full the rent, additional rent and other sum or sums of money and charges herein reserved and provided to be paid by Lessee, and the entire award for such temporary taking shall be paid to Lessee. Lessee shall repair and restore any and all damage to the Demised Premises, the Lessor Improvements and the Lessee Improvements as soon as reasonably practicable after such temporary taking to the extent of the condemnation award to Lessee. SECTION 15. ASSIGNMENT AND SUBLETTING. This Lease may not be assigned by Lessee without the prior written consent of Lessor, which consent shall not be unreasonably withheld, provided said third party agrees to comply with the terms and conditions of this Lease; provided, however, Lessee may assign this Lease to an affiliate without Lessor's prior written consent. Lessee may sublet parts of the Demised Premises without the prior consent of Lessor provided Lessee's subtenants agree to comply with the applicable terms and conditions of this Lease, and provided further that Lessee shall remain responsible to Lessor for the terms and conditions of this Lease. SECTION 16. DEFAULT. 16.1. Lessor's Rights in the Event of Lessee's Default. If Lessee shall fail or neglect to observe, keep or perform any of the covenants, terms or conditions contained in this Lease on its part to be observed, kept or performed, and the default shall continue for a period of thirty (30) days after written notice from Lessor setting forth the nature of Lessee's default (it being intended that in connection with a default not susceptible of being cured with diligence within thirty (30) days, the time within which Lessee has to cure the same shall be extended for such period as may be necessary to complete the same with all due diligence, but in no event longer than ninety (90) days), then and in any such event, Lessor shall have the right at its option, on written notice to Lessee, to terminate this Lease. Lessor shall thereafter have the right to enter and take possession of the Demised Premises with process of law and to remove all personal property from 14 the Demised Premises and all persons occupying the Demised Premises and to use all necessary force therefor and in all respects to take the actual, full and exclusive possession of the Demised Premises and every part of the Demised Premises as of Lessor's original estate, without incurring any liability to Lessee or to any persons occupying or using the Demised Premises for any damage caused or sustained by reason of such entry on the Demised Premises or the removal of persons or property from the Demised Premises. 16.2. Rights of Holder of Encumbrance in Event Lessee Defaults. If Lessee fails or neglects to observe, keep or perform any of the covenants, terms or conditions contained in this Lease on its part to be observed, kept or performed, the Holder of any indebtedness secured by an encumbrance on the leasehold estate under this Lease shall have thirty (30) days after receipt of written notice from Lessor setting forth the nature of Lessee's default and a reasonable time thereafter if it shall have commenced foreclosure or other appropriate proceedings in the nature thereof within such thirty (30) days and is diligently prosecuting such proceedings, but in no event longer than ninety (90) days, within which to endeavor to make good or remove the default or cause for termination of the Lease. All right of Lessor to terminate this Lease on the failure or neglect of Lessee to observe, keep and perform the covenants, terms and conditions of this Lease is, and shall continue to be, at all times prior to payment in full of the indebtedness to the Holder of Lessee, subject to and conditioned on Lessor's having first given the Holder written notice thereof and the Holder having failed to cause the default or cause for termination to be made good or removed within thirty (30) days after receiving written notice of default or cause for termination or within a reasonable time thereafter if it shall have commenced foreclosure or other appropriate proceedings in the nature of foreclosure within such thirty (30) days and is diligently prosecuting such proceedings, but in no event longer than ninety (90) days. In the event that the Lease is terminated due to the Lessee's bankruptcy, insolvency or other proceedings, and in the event the Holder has complied with the terms of this 16.2, then Lessor at Holder's option, shall enter into a new lease with Holder or the successful bidder at foreclosure on the same terms as this Lease, for the term then remaining, and specifically preserving all unexercised options. 16.3. Lessee's Rights in the Event of Lessor's Default. If Lessor shall fail or neglect to observe, keep or perform any of the covenants, terms or conditions contained in this Lease on its part to be observed, kept or performed, and the default shall continue for a period of thirty (30) days after written notice from Lessee setting forth the nature of Lessor's default (it being intended that in connection with a default not susceptible of being cured with diligence within thirty (30) days, the time within which Lessor has to cure the same shall be extended for such period as may be necessary to complete the same with all due diligence, but in no event longer than ninety (90) days), then and in any such event, Lessee shall have all rights available to it provided by law or equity. If Lessor's default shall render the Demised Premises of no operational use to Lessee, and the default shall continue for a period of thirty (30) days after written notice from Lessee setting forth the nature of Lessor's default, then Lessee shall have no further obligation for the payment of rent, taxes, or wharfage or for the provision of Products to 15 Lessor, and Lessee may terminate this Lease Agreement and remove all Trade Fixtures and Improvements subject to Section 3.2. SECTION 17. RIGHT TO CURE OTHER'S DEFAULTS. Whenever and as often as a party shall fail or neglect to comply with and perform any term, covenant, condition or agreement to be complied with or performed by such party hereunder, then, following thirty (30) days' prior written notice to such defaulting party (or such additional time to cure as may be accorded Lessee pursuant to Section 16.1 above, but in no event longer than ninety (90) days), the other party, at such other party's option, in addition to all other remedies available to such other party, may perform or cause to be performed such work, labor, services, acts or things, and take such other steps, including entry onto the Demised Premises, the Lessor Improvements and the Lessee Improvements thereon, as such other party may deem advisable, to comply with and perform any such term, covenant, condition or agreement which is in default, in which event such defaulting party shall reimburse such other party upon demand, and from time to time, for all costs and expenses suffered or incurred by such other party in so complying with or performing such term, covenant, condition or agreement. The commencement of any work or the taking of any other steps or performance of any other act by such other party pursuant to the immediately preceding sentence shall not be deemed to obligate such other party to complete the curing of any term, covenant, condition or agreement which is in default. SECTION 18. QUIET ENJOYMENT. Lessor covenants that at all times during the term of this Lease, so long as Lessee is not in default hereunder, Lessee's quiet enjoyment of the Demised Premises, the Lessor Track, the roads required for access to the Demised Premises and the Demised Premises Tracks or any part thereof shall not be disturbed by any act of Lessor, or of anyone acting by, through or under Lessor. Notwithstanding the foregoing, Lessor shall have the right upon reasonable notice to Lessee to enter the Demised Premised at any time to determine whether Lessee is in compliance with the requirement of this Lease. SECTION 19. ESTOPPEL CERTIFICATES. Each party hereto agrees that at any time and from time to time during the term of this Lease, within ten (10) days after request by the other party hereto or by any lender having an interest in Lessee's leasehold estate, it will execute, acknowledge and deliver to the other party or to such lender or any prospective purchaser, assignee or any mortgagee designated by such other party, a certificate stating (a) that this Lease is unmodified and in force and effect (or if there have been modifications, that this Lease is in force and effect as modified, and identifying the modification agreements), (b) the date to which rent has been paid, (c) whether or not there is any existing default by Lessee in the payment of any rent or other sum of money hereunder, and whether or not there is any other existing default by either party hereto with respect to which a notice of default has been served, and, if there is any such default, specifying the nature and extent thereof; and (d) whether or not there are any setoffs, defenses or counterclaims against enforcement of the obligations to be performed hereunder existing in favor of the party executing such certificate. 16 SECTION 20. WAIVER. No waiver by either party hereto of any breach by the other of any term, covenant, condition or agreement herein and no failure by any party to exercise any right or remedy in respect of any breach hereunder, shall constitute a waiver or relinquishment for the future of any such term, covenant, condition or agreement or of any subsequent breach of any such term, covenant, condition or agreement, nor bar any right or remedy of the other party in respect of any such subsequent breach, nor shall the receipt of any rent, or any portion thereof, by Lessor, operate as a waiver of the rights of Lessor to enforce the payment of any other rent then or thereafter in default, or to terminate this Lease, or to recover the Demised Premises, or to invoke any other appropriate remedy which Lessor may select as herein or by law provided. SECTION 21. SURRENDER. Lessee shall, on the last day of the term of this Lease or upon any termination of this Lease, surrender and deliver up the Demised Premises, with the Improvements then located thereon into the possession and use of Lessor, without fraud or delay and in good order, condition and repair, reasonable wear and tear excepted, free and clear of all lettings and occupancies, free and clear of all liens and encumbrances other than those existing on the date of this Lease and those, if any, created by Lessor, without (except as otherwise provided herein) any payment or allowance whatever by Lessor on account of or for any buildings and Improvements erected or maintained on the Demised Premises at the time of the surrender, or for the contents thereof or appurtenances thereto. That notwithstanding, in accordance with Section 3.2 of this Lease, Lessee may remove any Improvements within thirty (30) days of termination of the Lease. Lessee's Trade Fixtures, personal property and other belongings of Lessee or of any sublessee or other occupant of space in the Demised Premises shall be and remain the property of Lessee, and Lessee shall, except for Lessor's default, within thirty (30) days after the expiration of the Term of this Lease remove the same, and shall pay pro -rated rent for each day it remains on the Demised Premises, and in the event Lessee shall fail to do so, Lessor may cause the Trade Fixtures to be removed and Lessee agrees pay Lessor for the costs of removal within thirty (30) days of receipt of a statement therefore from Lessor. SECTION 22. MEMORANDUM OF LEASE. Each of the parties hereto will, promptly upon request of the other, execute a memorandum of this Lease in a form suitable for recording setting forth the names of the parties hereto and the term of this Lease, identifying the Demised Premises, and also including such other clauses therein as either party may desire, except the amounts of basic rent payable hereunder. SECTION 23. NOTICES. 23.1. All notices, demands or other writings in this Lease provided to be given or made or sent, or which may be given or made or sent, by either party to the other, shall be deemed to have been fully given or made or sent when made in writing and deposited in the United States mail, registered and postage prepaid, and by facsimile addressed as follows: 17 TO LESSOR: WITH COPY TO: City of Dubuque, Iowa City Manager City Hall 50 West 13th Street Dubuque IA 52001 Fax 319 589 -4149 City Attorney City Hall 50 West 13th Street Dubuque IA 52001 TO LESSEE: Gavilon Grain, LLC Eleven ConAgra Drive Omaha, NE 68102 Attention: Kylie Kuhl Facsimile: (402) 221 -0651 WITH COPY TO Gavilon Grain LLC 505 East 7th Street Dubuque, Iowa 52001 23.2. The address and /or fax number to which any notice, demand or other writing may be given or made or sent to any party as above provided may be changed by written notice given by the party as above provided. SECTION 24. MISCELLANEOUS. 24.1. Time of the Essence. Time is of the essence of this Lease and all of its provisions. 24.2. Governing Law. It is agreed that this Lease shall be governed by, construed and enforced in accordance with the laws of the State of Iowa. 24.3. Paragraph Headings. The titles to the paragraphs of this Lease are solely for the convenience of the parties and shall not be used to explain, modify, simplify or aid in the interpretation of the provisions of this Lease. 24.4. Modification of Agreement. Any modification of this Lease or additional obligation assumed by either party in connection with this Lease shall be binding only if evidenced in a writing signed by each party or an authorized representative of each party. 24.5. Parties Bound. This Lease shall be binding on and shall inure to the benefit of and shall apply to the respective successors and assigns of Lessor and Lessee. All references in this Lease to "Lessor" or "Lessee" shall be deemed to refer to and include successors and assigns of Lessor or Lessee without specific mention of such 18 successors or assigns. 24.6. Force Maieure. In the event that either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, unavailability of construction materials, unavailability or excessive price of fuel, power failure, riots, insurrection, war, terrorist activities, explosions, hazardous conditions, fire, flood, weather or acts of God, or by reason of any other cause beyond the exclusive and reasonable control of the party delayed in performing work or doing acts required under the terms of this Lease (collectively "Force Majeure "), then performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. LESSOR: CITY OF DUBUQUE, IOWA LESSEE: GAVILON GRAIN, LLC By: By: 17a /cam 4not- _- Roy D. Buol, Mayor Attest: Kevin S. Firnstahl, City Clerk 19 EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E LIST OF EXHIBITS Legal Description Demised Premises Conceptual Landscape Plan Existing Site Flood and Corps Restrictions 20 EXHIBIT A LEGAL DESCRIPTION Block II River Front Subdivision No. 2 in the City of Dubuque, Dubuque County, Iowa; And parts of unplatted slough and Government Lot 3, Section 19, Township 89 North, Range 3 East, 5th Principal Meridian in the City of Dubuque, Dubuque County, Iowa; Also including all the land between the westerly shore line of the Mississippi River to the aforementioned adjacent boundaries all as shown on the attached Exhibit A. The sum total of the above described parcels contains 9.70 acres, more or less, and is subject to easements of record and not of record. 21 EXHIBIT B DEMISED PREMISES 22 C r^.iips. Rest! ir_ted 11 91 d subV1.ct to survey rcah'c 2013 -05 -741 iaw:wweaa ?mwrMh4+ar vw .iab- r!4∎wibsar+l -ti Li++mfiRrye■1M.w.a3 'ham wftk'amMr -n+r e...1...th ry 23 EXHIBIT C CONCEPTUAL LANDSCAPE PLAN 24 25 26 27 'FORAGE@ "' - ;t PPE! OE 28 LIST OF POSSIBLE SPECIES Viburnum dentatum "Blue Muffin" Syringa patula "Miss Kim" Hemerocallis species (daylilies various colors) Berberis Thunbergii "crimson pygmy" "Golden Rocket" "Emerald Carousel" Barberry varieties to create hedge pattern Malus Prairiefire Crab (pink flower) Malus Morning princess Crab (red flower) Malus Firebird Crab (white flower) Crab tree varieties that would fit height restrictions with over head wires 29 EXHIBIT D EXISTING SITE 30 'Coips!. Restricted: * Are❑ subject survsy v, oirip �..aw yW m O w eq. "foals alamI �. w. . Oi .VD 149 ....... . • __ Y Y..IaN Tya M. 1 _--i w.dYrwaebL _—_- h � y �.K� .,,a ..v a.. tea. Lease Area V.23, Corps Restricted CC Access Easement 300 31 Feet 499 DUB %:mhpfrci..w uo M14tarciyn _ EXHIBIT E FLOOD AND CORPS RESTRICTIONS EXHIBIT E 11.River Stage 23 feet River Prediction 24 feet Public Works Department personnel will install a 3" pump and close the Peavey (Virginia Carolina) 24" gate located between the council circle and the Peavey loading dock. 12. River Stage 24 feet River Prediction 25 feet a. Public Works Department personnel will continue to patrol the flood control system 24/7. b. Public Works Department personnel will close the two Alliant Energy gates (sill elevation 25.5). c. Public Works Department personnel will install a pipe plug and 3" pump at Peavey (Olin Mathieson). d. Public Works Department personnel will install a pipe plug at Cargill (Thruput Terminal) at flap gate. e. Public Works Department personnel will notify Cargill (Thruput Terminals) to remove tracks and close the gates. f. Public Works Depaitment personnel will close the gate at the Peavey Terminal (Olin Mathieson). (See Attachment A for Public Works Department Personnel Assignments) Note: Extra equipment may be required to remove material from the gate sill prior to closing. 13. River Stacie 25 feet River Prediction 26 feet Water in Roosevelt storm sewer, which is pressurized, will now back into catch basins along Kerper Boulevard. Flap gates are installed on each catch basin; rain water will pond in street until it is 6" deep and then flow into sand to seep away. In case of rupture in this line, gate on the 84" sewer can be shut at the floodwall and pumps installed to pump water over the floodwall. 32 INSURANCE SCHEDULE City of Dubuque Insurance Requirements for Tenants and Lessees of City Property or Vendors (Suppliers, Service Providers) Insurance Schedule A 1. shall furnish a signed Certificate of Insutante (COI) to the City of Dubuque, Iowa for the coverage required im Exhibit I. prior to Contract or lease CrmmencementAll lessees of City property shall submit an updated COI annuaffy_ Eath Certificate shall be prepared on the most current AWED foram approved by the Department et insurance or an equivalent. Each certificateshall include a statement under Description of Operations as to why issued. Eg; Project N or tease of premises at or construction of 2 All polities of insurance required hereuxidershall he with a carrier authorized to do business in Iowa and ail carriers shall have a rating of it or better in the current A.M. Best's Rating Guide_ 3. Each Certificate shall be tuumished to thecordracting department of the City of Dubuque. a_ Faifureto provide mmirnnmi coverage shalnot be deemed a waiver of these requirements bythe City of Dubuque. Failure to obtehr or maintain the required insurance shall be considered a material breads of this agreement. 5_ ALt required endorsementsto various polices shall be attached to Certificate of insurance_ 6. Whenever a specific 150 form is limed, air equiva.lentfotm may be substituted subject to the provider identifying and listing in writing all darntions and exchusfons that differ from the 150 form. 7_ Providershall be required to any the minbnum. coverage /llmibs, or greater if required by law or other legal agreement, in Exhibit 1_: 8. Whenever an ISO farm is referenced the current edition of the form must be used. Pagel of SchedufeA, Property Or Vend [Suppliers Service Providers 33 City of Dubuque Insurance Requirements for Tenants and Lessees of City Property or Vendors (Suppliers, Service Providers) Insurance Schedule A (continued) Exhibit 1 AI COMMERCIAL GENERAL LIABILITY General Aggregate Limit 52,000,000 Products-Completed Operations Aggregate Limn 51,000,00D Personal and Advertising injury Limit 51,000,00D Each Occurrence 51,000,000 Fire Damage Limit (any one occurrence) $ 50,000 Medical Payments 5 5,000 a) Coverage shall be written on an occurrence, not claims made, form. All deviations from the standard 154 commercial general Embattle form CO 0001, or Business owners form BP 0002, shall be dearly identified. hI include ISO endorsement form CG 25 04 'Designated Leca¢ionjs) General Aggregate Limit° c] includeendorsement indiatingthat coverage is primary and noro-contnirutory. d) Include endorsement to preserve Governmental Immunity_ (Sample attached). e} Include an endorsement that deletes anyfellow emlployeeexclusion. f} Include additional insured endorsement for The City or Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions andj'orauthorities and their board members, employees and volunteers. Use 1501 form CG 2010. Ongoing operations. ga Irvendor utilizes Mikes or Segways in the conduct of business, include an endorsement reelecting that these vehicles are not extruded from Commercial General Liability coverage. BI WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory benefits covering aril employees injured on the job by accident or disease as prescribed by lowa Code Chapter 85 as amended_ Coverage A Coverage 3 Statutory—State of Iowa Employers Debility Each Accident 5200,000 Each Employee- Disease 52001,000 Policy Limit- Disease S5004000 Policy shall include an endorsement providing a waiver Msubrogation to the City of Dubuque- Policy shall include an endorsement for United States Longshore and Haab or Workers' Compensation coverage. Page 2 of 3 Schedule A, Property Or Vendors (Suppliers, Service Providers 34 City of Dubuque insurance Requirements for Tenants and Lessees of City Property or Vendors (Suppliers, Service Providers) Preservation of Governmental Immunities Endorsement 1. tier komajEgt The insurance carrier expressly agrees and states that the purchase of this poibcy and the including ofthe City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental Immunity available to the Oty of Dubuque, Iowa under Code of Iowa Section 670.4as it is now exists and as it may be amended from time to time. 2. claims Coverage. The insurance carrier further agrees that this policy of insurance shall cover onty those claims notsubjectto the defense of governmental immunity under the Code of Iowa Section 6704 as it nom edsts arid asit may be amended from time to time_ Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government immunity The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at anytime and shall do so upon thetirnely Written request of the insurance carrier, 4. Non-Denial of Coverage. The insurance carver shall not deny coverage under this policy and the insurance tauter shall not deny any of the rights and bene€its accruing to the City of Dubuque, Iowa under this policy for reasons of government-al immunity unless and until a court of competent jurisdiction has ruled In favor of the defense(s) of governmental immunity asserted by the City of Dubuque,. Iowa. No Other Change in policy_ The above preservation of governmental immunities shalt not otherwise change or alter the coverage avatiable under the policy_ SPECIMEN Page 3 of 3 Schedule A, Property Or Vendors (Suppriers,: Sersrice Providers 35 DISCLAIMER: This Information was compiled zing the Dubuque Area Geographic Information System ( DAGIS), which includes data created by both the City of Dubuque and Dubuque County. It is understood That, while the City of Dubuque and participating agencies utilized the most current and accurate Information available, DAGIS and it suppliers do not warrant the accuracy or currency of the Information or data contained herein. The City and participating agencies shall not be held liable for any direct, Indirect, incidental, consequential, punitive, or special damages, whether foreseeable or unforeseeable, arising out of the authorized or unauthorized use of this data or the Inability to use This data or out of any breach of warranty whatsoever. Existing Gavilon Leases 14 Dubuque Terminals Lease Hodge Transit Le Proposed Lease Sites Flint Hills Lease Document Path: H: \EngineeringlLease Agreements \CarGill Properties \LeaseLocationMap.mod $MINIS 71LLEC911 OF. l DUB Pubwi anLa