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Adams Co. Historical Lease Termination i3~~~E ~Y4-~ MEMORANDUM - , October 30, 2006 -C) c ~ I r -, ~ TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Termination of Lease with the Dubuque County Historical Society On February 6, 2006, the City Council approved a 45-year lease of the former Adams Company building in the Port of Dubuque to the Dubuque County Historical Society, who had planned to renovate the existing building as part of their proposed expansion of the National Mississippi River Museum. On August 4, 2006, the City awarded a contract for $411 ,220 to Tricon Construction for repairs to the building's roof. To date, the contractor has invested $90,583 of time and materials on this project. On September 28, 2006, the Dubuque County Historical Society and Diamond Jo Casino announced expansion plans for a joint project between the two groups. The expansion plans do not include utilization of the former Adams Company property. The Dubuque County Historical Society has requested termination of their lease of the former Adams Company property. The City appreciates this quick action by the Dubuque County Historical Society because this now makes the building available for redevelopment and there is some hope of saving the $297,000 U.S. Economic Development Administration grant that can be used for this building. Economic Development Director Dave Heiar recommends City Council approval of the termination of the lease by the Dubuque County Historical Society for the former Adams Company property. Dubuque County Historical Society has agreed to reimburse the City for any costs or penalties incurred by the Tricon renovation contract for repairs to the building's roof that were performed for the benefit of the Dubuque County Historical Society. As of October 13, 2006, the costs incurred by the City, which Dubuque County Historical Society acknowledges and agrees to reimburse the City in the event the City terminates the contract, are $90,583. I concur with the recommendation and respectfully request Mayor and City Council approval. (2t,1 G;;1-1/f/__ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director TERMINATION OF LEASE AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DUBUQUE COUNTY HISTORICAL SOCIETY FOR THE ADAMS COMPANY BUILDING AND SITE WHEREAS, the City of Dubuque, Iowa (City) and Dubuque County Historical Society (DCHS) entered into a Lease Agreement dated the 6th day of February, 2006 for the following described real property; Lot 1 in Adams Company's 2nd Addition, in the City of Dubuque, Iowa, according to the recorded Plat thereof and WHEREAS, City and DCHS now desire to terminate the Lease Agreement. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. The Lease Agreement dated the 6th day of February, 2006 is terminated effective upon execution of this Termination Agreement by both parties. Except as provided herein, the parties mutually release each other from any further obligations in the Lease Agreement. 2. DCHS further agrees as follows: a. DCHS acknowledges that City entered into a contract for the benefit of DCHS with Tricon Construction in the amount of $411,220.00 for the repair of the roof to the Adams Co. Building. If City determines in its sole discretion that it is necessary to terminate the contract and City incurs any costs or penalties to the contractor because of the termination of the contract, DCHS shall reimburse City for all such costs or penalties within fourteen (14) days of a receipt from City for such costs and penalties. As of October 13, 2006, the costs incurred by City, which DCHS acknowledges and agrees to reimburse City in the event City terminates the contract, are $90,583.00, as shown by Exhibit A attached hereto. b. DCHS acknowledges that City applied for and was awarded a grant from EDA in the amount of $297,000 for the repair of the roof to the Adams Co. Building. DCHS agrees to cooperate with City to assure that City receives the grant. In the event that City does not terminate the contract for the repair of the roof but does not receive the EDA grant because of DCHS's termination of the Lease Agreement, DCHS agrees to pay City the total cost of the repair of the roof but not to exceed the amount of the EDA grant of $297,000 within fourteen (14) days of notice from City that City will not receive the grant. c. Notwithstanding the foregoing, DCHS shall have no liability to City if either the termination of the contract as described in Par. (a) or the loss of the EDA grant as described in Par. (b) is caused solely by delay attributable to asbestos abatement in the Adams Co. Building. d. If DCHS pays to City any amount under Par. (a) or (b), City shall reimburse DCHS to the extent City is also paid such amount by a subsequent developer of the Adams Co. Building. CITY OF DUBUQUE, IOWA By: Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk DUBUQUE COUNTY HISTORICAL SOCIETY By: cutive Director Attest: Jerry En STATE OF I A ) COUNTY OF DUBUQUE ) ss: On this day of 2006, before me, , a Notary Public in and for the State of Iowa, personally appeared Roy D. Buol and Jeanne F. Schneider, to me personally known, and, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, by authority of its City Council, as contained in Resolution No. adopted by the City Council of the City of Dubuque, Iowa, on the day of , 2006, and that they acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. Notary Public in and for State of Iowa STATE OF IOWA ) COUNTY OF DUBUQUE ) ss: On this _ day of , 2005, before me, a Notary Public in and for the State of Iowa, personally appeared and Jerry Enzler, to me personally known, who being by me duly sworn did say that they are President and the Executive Director respectively of Dubuque County Historical Society, that (the seal affixed hereto is the seal of said)(no seal has been procured by the said) Society and that said instrument was signed (and sealed) on behalf of said Society by authority of its Board of Directors and they acknowledged the execution of said instrument to be the voluntary act and deed of said Society, by it voluntarily executed. Notary Public in and for State of Iowa , , www.triconca.com Corporate Office 2245 Kerper Blvd Suite 2 Dubuque, IA 52001 P 563.588.9516 F 563.588.9519 902 17th Ave Monroe, WI 53566 P 608.325.4889 16776 O'Brien Rd Minooka, IL 60447 P 815.521.9120 F 815.467.2327 TF 866.588.9516 October 13, 2006 Mark Fassbinder Durrant Architect 700 Locust St. Suite 942 Dubuque, IA 52001 Project: Re: \~ TRICON National River Musewn - Adams Re-Roof Proposal for Early Contract Closeout- City to Purchase All Materials On-Site Giese Sheet Metal (see attached) Tricon Project Management Outfit Crane/Lift Steel Deck (Restock/Ship/Load) Steel Deck Unload Steel Material Sub-Total OHP Bond Total Ron Richard Cc: Bob Schiesl 49,430.00 5,250 3,013 22,014 690 4,181 84,578 4,229 1,776 $90,583 OCT-12-2006 THU 04:11 PM ,ioso roofin, co GI€S€ ROOFING. ARCHITECTURAL METAL . HVAC Oc:tober 6, 2006 Ron Richard Tricon COIISIrUclion Co. 13 7 Main S1reet ~ue, Iowa 52001 RE. AdalD!l ~mplllY Duildln/:: De8r Ron; Here is a breakdown of the accumulated cost to date. L Material A. Nail base ins. non-Rtumable B. 2" I.S.O. iDsuIation. C. Futeners - n. Labor (measure, equipment delivericslpick up, unloading, reloading) . m. Co_luioaiac (shop drawings, orderiDg. l'CbcdulinglUld manpower Degotialioas) _ Total- $25,990.00 $ 1 5.570.00 $4,390.00 S1980.oo $1.500.00 $49,430.00 It you bave any questions in regards to this, pleuc feel free to call. s~ Dan Lcibfiicd ~ject Mauaaer 282Il ftm SlrwI. Dubuque.1A ~ J (M3) 5I6-2lIllO Phon. . (M3) 5I6-2lI6e falr 8 A R R Y A. L I N 0 A H L, E S CITY ATTORNEY MEMO DATE: Jeanne Schneider City Clerk October 30, 2006 To: RE: Termination of Lease Agreement Between the City of Dubuque and Dubuque County Historical Society Enclosed for the November 6, 2006 City Council meeting is the original Termination of Lease Agreement signed by Historical Society representatives and notarized for recording. Once the Agreement has been approved by the City Council and signed, would you please record the original. Enclosure cc: Juanita Hilkin, Office Manager OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113/ FAX (563) 583-1040/ EMAIL balesq@cityofdubuque.org TERMINATION OF LEASE AGREEMENT RECORDER'S COVER SHEET Preparer Information: Barry A. Lindahl, Esq. Suite 330, Harbor View Place 300 Main Street Dubuque, IA 52001-6944 Return Document To: Barry A. Lindahl, Esq. Suite 330, Harbor View Place 300 Main Street Dubuque, IA 52001-6944 TERMINATION OF LEASE AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DUBUQUE COUNTY HISTORICAL SOCIETY FOR THE ADAMS COMPANY BUILDING AND SITE WHEREAS, the City of Dubuque, Iowa (City) and Dubuque County Historical Society (DCHS) entered into a Lease Agreement dated the 6th day of February, 2006 for the following described real property; Lot 1 in Adams Company's 2nd Addition, in the City of Dubuque, Iowa, according to the recorded Plat thereof and WHEREAS, City and DCHS now desire to terminate the Lease Agreement. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. The Lease Agreement dated the 6th day of February, 2006 is terminated effective upon execution of this Termination Agreement by both parties. Except as provided herein, the parties mutually release each other from any further obligations in the Lease Agreement. 2. DCHS further agrees as follows: a. DCHS acknowledges that City entered into a contract for the benefit of DCHS with Tricon Construction in the amount of $411,220.00 for the repair of the roof to the Adams Co. Building. If City determines in its sole discretion that it is necessary to terminate the contract and City incurs any costs or penalties to the contractor because of the termination of the contract, DCHS shall reimburse City for all such costs or penalties within fourteen (14) days of a receipt from City for such costs and penalties. As of October 13, 2006, the costs incurred by City, which DCHS acknowledges and agrees to reimburse City in the event City terminates the contract, are $90,583.00, as shown by Exhibit A attached hereto. b. DCHS acknowledges that City applied for and was awarded a grant from EDA in the amount of $297,000 for the repair of the roof to the Adams Co. Building. DCHS agrees to cooperate with City to assure that City receives the grant. In the event that City does not terminate the contract for the repair of the roof but does not receive the EDA grant because of DCHS's termination of the Lease Agreement, DCHS agrees to pay City the total cost of the repair of the roof but not to exceed the amount of the EDA grant of $297,000 within fourteen (14) days of notice from City that City will not receive the grant. c. Notwithstanding the foregoing, DCHS shall have no liability to City if either the termination of the contract as described in Par. (a) or the loss of the EDA grant as described in Par. (b) is caused solely by delay attributable to asbestos abatement in the Adams Co. Building. d. If DCHS pays to City any amount under Par. (a) or (b), City shall reimburse DCHS to the extent City is also paid such amount by a subsequent developer of the Adams Co. Building. CITY OF DUBUQUE, IOWA By: Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk DUBUQUE COUNTY HISTORICAL SOCIETY By: ~w .J (l,~ y . Bertsch, President ~ STATE OF IOWA ) COUNTY OF DUBUQUE ) ss: On this day of , 2006, before me, , a Notary Public in and for the State of Iowa, personally appeared Roy D. Buol and Jeanne F. Schneider, to me personally known, and, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, by authority of its City Council, as contained in Resolution No. adopted by the City Council of the City of Dubuque, Iowa, on the day of , 2006, and that they acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. Notary Public in and for State of Iowa STATE OF IOWA ) COUNTY OF DUBUQUE ) ss: I On this QlL'-Jtday of oriehof ,20oh, before me, a Notary Public in and for the State of Iowa, personally appeared Jeff Bertsch and Jerry Enzler, to me personally known, who being by me duly sworn did say that they are President and the Executive Director respectively of Dubuque County Historical Society, that (the seal affixed hereto is the seal of said)(no seal has been procured by the said) Society and that said instrument was signed (and sealed) on behalf of said Society by authority of its Board of Directors and they acknowledged the execution of said instrument to be the voluntary act and deed of said Society, by it voluntarily executed. and for State of Iowa Ii' 'OW" KlMA.1<AMENTZ (lD -'II ION NO. 74l1OOO D1'IRE$