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Klauer Mfg. Co. Lease 5 Yr. D~~~E ~~~ MEMORANDUM September 8, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Klauer Manufacturing Company City Engineer Gus Psihoyos recommends the City Council receive and file the acknowledgement executed by the City Manager for the five-year lease extension between the City of Dubuque and Klauer Manufacturing Company for the period December 1, 2006 through November 30, 2011. This lease allows the placement of an industrial security fence on City property around the Klauer Manufacuting facility at 1195 Roosevelt Street Extension. I concur with the recommendation and respectfully request Mayor and City Council approval. CVu Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer ,. D~~~E ~~~ MEMORANDUM September 8, 2006 TO: FROM: Michael C. Van Milligen, City Manager Gus Psihoyos, City Engineer .../~O Klauer Manufacturing Company SUBJECT: INTRODUCTION This memo is to request the City Council to receive and file the acknowledgment executed by the City Manager for the five-year lease extension between the City of Dubuque and Klauer Manufacturing Company for the period of December 1, 2006 through November 30, 2011. BACKGROUND In 1981 the City of Dubuque entered into a twenty-year (1981 to 2001) lease agreement with Klauer Manufacturing Company to allow the placement of an industrial security fence around its facility at the 1195 Roosevelt Street Extension on City property. The lease provides for four five-year automatic extension periods (through 2021), provided notice is given by Lessee not less than sixty days prior to the expiration term. DISCUSSION On August 15, 2006, Klauer Manufacturing Company formally requested the City Manager to acknowledge extension of its lease with the City by exercising its second of the four five-year terms pursuant to the terms and conditions set forth in the lease. The lease and this extension have been reviewed by the City Attorney. ACTION TO BE TAKEN It is requested that the City Council receive and file the acknowledgment executed by the City Manager for the five-year lease extension between the City of Dubuque and Klauer Manufacturing Company for the period of December 1, 2006 through November 30, 2011. cc: Cindy Steinhauser, Assistant City Manager Steven Sampson Brown, Project Manager Ken TeKippe, Finance Director E. Ma"hall Thomas, 1907-1989 Francis J. O'Connor, 1916-1990 ATTORNEYS AT LAW ["(18.10 U'WW.octhomaslaw.com August 15,2006 Mr. Michael Van Milligen City Manager City of Dubuque 50 W. 13'" St. Dubuque, lA 52001 RE: Lease Between City of Dubuque and Klauer Manufacturing Company Dated November 30, 1981 Dear Mike: Enclosed with this letter please find a copy of Resolution 350-81 and the attached Lease which was approved by the City Council. The original term of the Lease was for a period of December 1, 1981 through November 30, 2001. The Lea&.e provides for four five-year extension periods provided notice is given not less than sixty days prior to the expiration term. This Lease was extended for a five-year period terminating November 30, 2006. On behalf of Klauer Manufacturing Company, we hereby give notice ilf its deSIre to extend the Lease for five (5) additional years (December I, 2006 through November 30, 2011) pursuant to the terms and conditions set forth in the Lease. Please sib'11 the Acknowledgment that is with this letter and return It to us acknowledging receipt of thIs letter on or before September 22, 2006. V cry tml y yours, r JCO:cck cc: Mr. W. R. Klauer Ene. John C. O'Connor I ext. 234 I joconnor@octhomaslaw.com Duhuoul' Buildinl! I 700 Locust Street, Suite 200 P.O. Box 599 I Dubuwuc, Iowa 52004-0599 I Phone 563.557.8400 I Fax 563.556.1867 JOHN C. O'CONNOR CHAD C. LEITCH >;< JAMES E. GOODMAN, JR. * PETER D. ARLlNG*9t EI.lIU' E. REIl\'ERS BRENDAN T. QUANN RICHARD K. WHITrY DAVIN C. CURTISS *t JOSHUA P. Wl:lOEMANN THOMAS S. COLLINS, OF COUNSEL A. Joa~1 ARENZ tt STEPHEN c. KRUMPE *t PAUL]. SlGWAR1H t CHRISTOPHER C. FRY All attomc)'s licensed in Iowa I * Also licensed in Illinois I t Also licensed in Wisconsin I s Also licensed in Minnesota :\: Certified in Civil Trial Advocacy by National Board of Trial Advocacy . . ... ACKNOWLEDGMENT Lease Between City of Dubuque and Klauer Manufacturing Company Dated November 30, 1981 I hereby acknowledge receipt of this Extension. (J1l! (:~:1 /s/ Michael Van Milligen City Manager -- '. . ...._-' ...... ~ < . . .( .t. . " RESOLUTION NO. 350-81 350 - ~l WHEREAS, pursuant to Resolution and published notice of time and place of hearing, published in the Telegraph-Herald, a news- paper of general circulation published on the 30th day of October, 1981 in the City of Dubuque, Iowa, the City Council of the City of Dubuque, Iowa met on the 9th day of November, 1981, at 4:30 o'clock P.M. (CST) in the City Council Chambers in the City Hall, Dubuque, Iowa to consider the proposal to enter into a Lease Agreement by and between the CITY OF DUBUQUE, Iowa, as Lessor and KLAUER }urnUFACTUR- ING COMPfu~Y, as Lessee, for that portion of real estate adjoining Lot.l of Lot 1 of Lot 1 of Block 1 in"River Front Subdivision No. 5" and abutting property owned by Lessee, as delineated llteOn "Exhibit A" to Resolution No. 315-81 and subject to such other terms and condi- tions as set forth therein, a copy of which Lease Agreement is hereto attached, and by reference made a part hereof as though fully set out herein; and . WHEREAS, the City Council of the City of Dubuque, Iowa over- ruled any and all objections, oral or written, to the proposal to grant said Lease Agreement under the terms and conditions of said Lease Agreement set out therein; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the proposal to enter into a Lease Agreement by and between the CITY OF DUBUQUE, IOWA, as Lessor, and KLAUER ~UU~U- FACTURING CO~~ANY, as Lessee, covering that portion of real estate adjoining Lot 1 of Lot 1 of L'ot 1 of Block 1 in "River Front Sub- division No.5" and abutting property owned by Lessee, as delineated on "Exhibit A" attached to Resolution No. 315-81 and subject to such terms and conditions as set forth therein, a copy of which is hereto attached and by reference made a part hereof as though fully set out herein be and the same is hereby approved under the terms and conditions set out in said Lease Agreement. Section 2. That the Mayor and City Clerk be and they are hereby authorized and directed to execute said Lease Agreement for and on behalf of the City of Dubuque, Iowa. Section 3. That the City Clerk be and she is hereby directed to file a certified copy of this Resolution in the office of the Dubuque County Recorder and the office of the City Assessor. .' . LEASE FOR INDUSTRIAL SITE SECURITY PERIMETER \ CITY OF DUBUQUE - KLAUER MANUFACTURING COMPANY This LEASE is made and executed by and between the CITY OF DUBUQUE, IOWA, a municipal corporation, hereinafter called "Lessor", and KLAUER MANUFACTURING COMPANY, an Iowa corporation with its principal place of business in Dubuque, Iowa, hereinafter called "Lessee"; WITNESSETH: WHEREAS, Lessor is the owner of a tract of land designated and described as Lot 1 of Lot 1 of Lot 1 in Block 1, Riverfront Subdivision No.5, in the City of Dubuque, Iowa, and by this Agreement proposes to lease a portion thereof to Lessee as is shown and delineated upon the attached Exhibit "A", and shaded grey in color and which property is hereafter referred to as the "Leased Area", such Exhibit "A" being by reference incorporated herein as though fully set out herein; and WHEREAS, Lessor and Lessee are desirous of entering into an agreement whereby Lessor agrees to Lease and Lessee hires from Lessor the Leased Area upon the terms and conditions hereinafter set forth; NOW, THEREFORE, in consideration of the mutual covenants and agreements of the Lessor and the Lessee, each to the other, it is mutually agreed as f 011 OWS.: ARTICLE I. ORIGINAL TERM AND OPTION TO EXTEND ORIGINAL TERM. Lessor hereby leases to Lessee and Lessee hires from Lessor the "Leased Area" for a term of twenty (20) years commencing on the fi rst (lst) day of December 1981, and endin9 on the thirtieth (30th) day of November 2001. It is agreed by and between the parties that the Lessee shall have the option to extend the lease term for four (4) additional five (5) year terms for a total of twenty (20) additional years, renewable each fifth (5th) year upon written notice of the Lessee to the Lessor, 9iven not less than sixty (60) days in advance of the expiration of the term. The terms and conditions of this lease during any extended term shall be the same as those set forth herein for the original term of this lease. It is further understood that this lease and the term herein specified" shall pertain only to that part of the leased area abutting property owned by the Lessee. If Lessee shall exercise its option to buy other property abutting the leased area, this lease, under its original term, shall be extended to include such additional portion of the leased area as may abut property of the Lessee. , . ARTICLE II. RENTAL. The annual rental to be paid by the Lessee shall be one hundred dollars ($100.00) payable in advance on the first (1st) day bf December, 1981, and on the first (1st) day of December for each year thereafter durin9 the term of this lease, or any extension thereof. ARTICLE III. USE OF PREMISES. Lessee covenants and agrees, during the term of this lease and any extension thereof, not to cause or permit construction of any improvements or buildings upon the Leased Area provided that Lessee may grade, pave, seed or landscape said area in such manner as Lessor may hereafter approve and Lessee may erect, install, maintain, repair and replace a security fence along and within to the easterly boundary of the Leased Area for the purpose of establishing a security perimeter around the industrial facilities proposed to be erected and operated by the Lessee on its property adjoining and adjacent to the Leased Area. It is understood that such security fence, when erected, shall be in a manner permitted by local law and that the Lessee shall not install nor permit display signs nor any other improvements to be erected on the Leased Area except as herein provided. Lessee shall be responsible for maintaining the ground surface within the "Leased Area". Lessee further agrees that any security fence erected upon the "Leased Area" shall be provided with operable gates of not less than twelve foot (12') open width, and located so as to permit access, including vehicular access, to the "leased Area" from the northerly and southerly ends of the "Leased Area", and two (2) additional such gates to be provided, to be located in the vicinity of Lot 7 in Block 1', and Lot 2 of Lot 1 of Lot 1 in Block 1, both in Riverfront Subdivision No.5. It shall be the purpose of such gates to permit the Lessor, its agents or assigns, to have for the term of this Lease and any extension thereof, unimpeded rights of access through the "Leased Area" and to the flood protection levee. Plans for the erection of such security fence, and for the location of gates shall be submitted to the Lessor for its approval prior to installation of such fence. It is herein acknowledged that Lessee is permitted to install locking devices on the gates on the condition that Lessor shall be provided keys or other independent means of access to the easement area. ARTICLE IV. ASSIGNMENT AND SUBLETTING. Lessee may not assign or sublet the premises or any portion thereof with- out first securing the written prior consent of the Lessor, with the understanding that such consent will not be unreasonably withheld. ARTICLE V. QUIET ENJOYMENT. Landlord covenants that its estate in said premises is fee title owner; and that the Lessee on paying the rent herein reserved and performing all the agreements by the Lessee to be performed as provided in this lease shall and may peaceably have, hold and enjoy the demised premises for the term of this lease free from molestation, eviction or disturbance by the landlord or any other persons or legal entity whatsoever. PAGE 2 ARTICLE VL. INSURANCE. Lessee shall furnish Lessor with a copy of poli~y of insurance written by a company authorized to do business in the State of Iowa and insuring Lessee, reflecting the following coverage with waivers of subrogation rights, and providing that there shall be no cancellation or change in the policy until Lessor shall have been given ten (10) days prior written notice thereof: (a) Workmen's Compensation Insurance. (b) Automobile Liability Insurance with $100,000/$300,000 Bodily Injury limits and $100,000 Property Damage limits. (c) Comprehensive General Liability Insurance with at least $1,000,000 Bodily Injury Limits and $100,000 Property Damage limits. ARTICLE VII. PAYMENT OF RENTS. All rents due and payable hereunder shall be delivered to Lessor at its office in Dubuque, Iowa on or before the due date specified herein. ARTICLE VIII. DEFAULT. If Lessee shall make default in the payment of the rentals hereunder, or any part thereof, or shall make default in the performance of any of the other covenants herein contained, and such default shall continue for a period of thirty (30) days after written notice thereof, specifying the default complained of, mailed to Lessee by United States certified mail, return receipt requested, then it shall be lawful for Lessor, at its election, to declare the term of this lease ended and to re-enter upon the leased property, with or without process of law, and to expel and remove Lessee, or any person or persons in or upon the same, using such force as may be necessary under the circumstances; and if at any time, by reason of such default of the Lessee and the continuance thereof for such period of thirty (30) days after written notice has been given, said term shall be so ended, Lessee hereby covenants and agrees to surrender and deliver up the leased property peaceably to the Lessor. ARTICLE IX. INDEMNITY. Lessee agrees to indemnify and hold harmless the Lessor, its agents; contractors and the United States Army Corps of Engineers from any and claims for damages that may occur to Lessee's property, fixtures, fencing or other. installations within the "Leased Area" that may result from their access or entry upon or through the "Leased Area". Lessee agrees to indemnify and hold harmless the Lessor from any and all damages or claims whatsoever, actions or causes of action in law or equity, or damages or claims for damages to persons or property by reason of the Lessee's use or misuse of the demised premises and further agrees to reimburse Lessor for any and all damages to the premises resulting from the misuse of the property leased. Lessor agrees to promptly give its notice of any and all claims and actions, as stated aforesaid, and to permit Lessee and/or its insurance carrier to investigate and defend the same. PAGE 3 j ";... t. " " . , ARTICLE X. SURRENDER OF PREMISES AT END OF TERM DR EXTENSION THEREOF. Lessee agrees that upon the termination of thi~ Lease, or extension thereof, it will surrender, yield up and deliver the leased premises in good, clean condition. ARTICLE XI. LESSOR'S RIGHTS OF ACCESS AND USE OF PREMISES. (a) Utilities. The Lessor, its successors or assigns, shall retain perpetual right to enter upon the "Leased Area" and to install therein water mains, sanitary sewer and storm sewer pipes and such appurtenances as lessor may require. (b) The Lessor City of Dubuque reserves the perpetual and assignable right to enter upon the leased premises for the purpose of maintaining, repairing, operating, patrolling and replacing the existing flood control levee, including all appurtenances thereto, and further including the right to clear, cut, fell, remove and dispose of any and all timber, trees, underbrush, buildings and/or other obstructions therefrom excluding the security fence proposed to be erected on the Leased Area by Lessee which has received the advance approval of Lessor. Further, the Lessee shall not construct or operate any structure or machinery on, under or across said levee, nor shall it excavate or make any change in the levee or wi thi n the I eased premi ses wi thout pri or determi nati on by the U. S. Army Corps of Engineers and the Lessor that such construction, ~lteration, or operation will not adversely affect the functioning of the protectrive facilities. The Lessee shall submit any requests and plans to the Corps and to the City for approval prior to undertaking any such work. IN WITNESS WHEREOF, the parties have hereto set their hands this 30th day of November , 1 981. . KLAUER ,MANUFACTURING COMPANY, INC. CITY OF DUBUQUE, IOWA ',~y,' 'tXIJVy.".- '~'f'~; I'- BY \' .' \ I ATTEST: BY: ?(ffvy aS~Y>C~K PAGE 4 . ""4 '. , , . . -2- \ Passed, approved and adopted this 9th day of November 1981. ~\~~~.... Mayor .. "'- ATTEST: ~a~ '/fi ty Clerk ~ .:::: ..~ Q 2:" :::-_A . ", -., -- ~-: -...: ~ .:"": (J .'::.. :-- . I":! t:J -.:..:.::-~ ..::: ::",4 :::s - en , :..:,... -- .:>-. ~. "'" -- !;-:. c..:::. .:-.... I'-t' -~. '. ."....:.~ -- -. (-.:'- ::::C' ~ ..;:.- 7-BLOCK I "RIVER FRONT SUB. NO.5" 8'.0' EXHIBIT II A" INDUSTRIAL SITE SECURITY PERIMETER -0 HARBOR STREET ci . \ , 80.0' 9'.0' -.. q- -N .. . '" .. ~ u 0 .J cD 95.0' 140.0' , Z r<1 0 0 ({) Z Z W Z ~ 0 ; - 10 X (() - d w > .0 Z g 0 _cD .. CO ",=> ::;) U<fl (() 0.... .JZ ~ cDO Z 'a: 0 -;-u.. Cl: ~a: u.. UJ .N > Cl: .. a: W ci = > :: w .0 - ::;) 0 Cl: ~ Z .. '" = W '" > U 0 -. <( .J '"' cD . :' ". Scale I'" 100' 4 72.89' B - BLOCK I "RIVER FRONT SUB. NO.5" ... ~ .- ~ :, O. .. , ... &r.,;j -lD 0..... .,..........~"fo<i!. .., ,,:,.q.; In ~ 'II '0"" ~ ,,,"' I~O.O' 80.0' :312.91' 9 - BLOCK I ({) <( Cl: :r: ({) ( . ~ --- , ~. - \ ') v- /'l/!// . \ CERTIFICATE OF CITY CLERK STATE OF IOWA ) ) ss: COUNTY OF DUBUQUE ) I, Mary A. Davis, do hereby certify that I am the duly appointed, qualified, and acting Clerk of the City of Dubuque in the County afore- said, and as such Clerk I have in my possession or have access to the records of the proceedings of the Ci ty Council. I do further state that the hereto attached Resolution No. 350-81 is a correct copy of the original Resolution No. 350-81 approved and adopted by the City Council of the City of Dubuque, Iowa, at a session held by said _ Council on the 9th day of November , 19 81 In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque. Dated at Dubuque, Iowa, this 10th day of November , 19 81 -\ ~t:l~ Mary . Davis Clerk of the ity of Dubuque, Iowa.