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Hwy 151 & 61 Development Amendment No. 1 , D~~~E ~ck~ MEMORANDUM November 2, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Highway 151 and 61 Development, LLC City Attorney Barry Lindahl recommends City Council approval of Amendment No. 1 to the Development Agreement between the City of Dubuque, Iowa and Hwy 151 & 61 Development, LLC. I concur with the recommendation and respectfully request Mayor and City Council approval. Mi,(J/ jf~!-- MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager ,-', . . BARRY A. LINDAHL, CITY ATTORNEY MEMO To: Michael C. Van Milligen City Manager DATE: November 2, 2006 RE: Hwy. 151 & 61 Development, LLC Attorney Brian J. Kane has requested that the City Council consider the enclosed Amendment NO.1 To Development Agreement Between the City of Dubuque, Iowa and Hwy 151 &61 Development, LLC. Section 3.3 of the Agreement establishes a deadline of November 30, 2006 for the City and the Developer to agree on the location of the Bee Branch storm sewer which runs through the development property. Because a final decision has not been made with respect to the location of the storm sewer, the Developer is asking that the deadline be extended to December 31, 2006. I recommend that Amendment No.1 To the Development Agreement be submitted to the City Council for consideration. Enclosure cc: Brian Kane, Esq. OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VISN PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113/ FAX (563) 583-1040/ EMAIL balesq@cityofdubuque.org THE CITY OF DUB E MEMORANDUM November 2, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Highway 151 and 61 Development, LLC City Attorney Barry Lindahl recommends City Council approval of Amendment No. 1 to the Development Agreement between the City of Dubuque, Iowa and Hwy 151 & 61 Development, LLC. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager BARRY A. LINDAHL, E CITY ATTORNEY MEMO To: DATE: RE: Michael C. Van Milligen City Manager November 2, 2006 Hwy. 151 & 61 Development, LLC Attorney Brian J. Kane has requested that the City Council consider the enclosed Amendment No. 1 To Development Agreement Between the City of Dubuque, Iowa and Hwy 151 & 61 Development, LLC. Section 3.3 of the Agreement establishes a deadline of November 30, 2006 for the City and the Developer to agree on the location of the Bee Branch storm sewer which runs through the development property. Because a final decision has not been made with respect to the location of the storm sewer, the Developer is asking that the deadline be extended to December 31, 2006. I recommend that Amendment No. 1 To the Development Agreement be submitted to the City Council for consideration. Enclosure cc: Brian Kane, Esq. 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 THE CITY OF DUB MEMORANDUM December 19, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Small Groups — December 20 and 21, 2006 Development Agreement between the City of Dubuque and Highway 151 & 61, LLC Wayne Briggs has requested authorization for City staff to negotiate an amendment to the development agreement between the City of Dubuque and Highway 151 & 61, LLC, to include provisions to realign the Bee Branch Storm Sewer and change it from an open waterway to an underground facility from the 16th Street Detention Basin through the Highway 151 & 61 property. The additional cost, estimated at $3.5 million, of changing from an open waterway to an underground facility would be the responsibility of Highway 151 & 61, LLC. The amendment to the development agreement would be presented to the City Council in January 2007. The attached recommendation from City Engineer Gus Psihoyos is conceptual and he has not been involved in the financial discussion related to this concept, except to verify the feasibility by looking at MSA Engineering's drawings. The City would have responsibility for maintenance, as the City would for an above- ground facility. The City would also be responsible to replace the improvement some day, if it ever needed to be replaced. If an agreement can be negotiated so that the City does not have risk for cost overruns in construction, this would be a good arrangement for the City. Wayne Briggs is getting me information, but he says this will provide a significant return to the City in additional development. It will also facilitate a schedule he must meet to have the entryway off of Sycamore Street to his project ready for Wal-Mart to build in 2007. MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager (VI/ klA/I Michrael C. Van Milligen MEMORANDUM December 13, 2006 TO: Michael C. Van Milligen, City Manag FROM: Gus Psihoyos, City Engineer SUBJECT: Development Agreement between the City of Dubuque and Highway 151 & 61, LLC INTRODUCTION The purpose of this memo is request authorization .to negotiate an amendment to the development agreement between the City of Dubuque and Highway 151 & 61, LLC that the City Council authorized for execution at the June 5, 2006 City Council meeting (Resolution 230-06). BACKGROUND In December, 2004, the City Council passed Resolution 491-04 recognizing the alignment of the proposed Bee Branch Creek Restoration Project in the vicinity of the former Smithfield property now owned by Highway 151 & 61, LLC. In addition, the City Council passed Resolution 492-04 that endorsed the preliminary design elements of the open waterway concept. On June 5, 2006, the City Council authorized the execution of a development agreement between the City of Dubuque and Highway 151 & 61, LLC for the redevelopment of the former Smithfield property. In November, 2006, the City Council approved Amendment No. 1 to the agreement. The amendment consisted of modifying Section 3.3 that established a deadline of November 30, 2006, for the City and the developer to agree on the location of the Bee Branch Storm Sewer that runs through the developer's property. Because the final decision had not been made with the respect to the sewer location, the developer asked that the deadline be extended to December 31, 2006. THE CITY OF SUB MEMORANDUM December 19, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Small Groups — December 20 and 21, 2006 Development Agreement between the City of Dubuque and Highway 151 & 61, LLC Wayne Briggs has requested authorization for City staff to negotiate an amendment to the development agreement between the City of Dubuque and Highway 151 & 61, LLC, to include provisions to realign the Bee Branch Storm Sewer and change it from an open waterway to an underground facility from the 16th Street Detention Basin through the Highway 151 & 61 property. The additional cost, estimated at $3.5 million, of changing from an open waterway to an underground facility would be the responsibility of Highway 151 & 61, LLC. The amendment to the development agreement would be presented to the City Council in January 2007. The attached recommendation from City Engineer Gus Psihoyos is conceptual and he has not been involved in the financial discussion related to this concept, except to verify the feasibility by looking at MSA Engineering's drawings. The City would have responsibility for maintenance, as the City would for an above- ground facility. The City would also be responsible to replace the improvement some day, if it ever needed to be replaced. If an agreement can be negotiated so that the City does not have risk for cost overruns in construction, this would be a good arrangement for the City. Wayne Briggs is getting me information, but he says this will provide a significant return to the City in additional development. It will also facilitate a schedule he must meet to have the entryway off of Sycamore Street to his project ready for Wal-Mart to build in 2007. MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Mic ael C. Van Milligen DISCUSSION As Highway 151 & 61, LLC considered how to develop the former Smithfield property, they considered alternative alignments through their property and they considered the construction of an underground facility as opposed to the open waterway concept endorsed by the City Council and reflected in the City's Five -Year Capital Improvement Program budget. Highway 151 & 61, LLC has indicated that they would like to change the alignment of the proposed storm sewer improvement from the west portion to the middle portion of their property and construct it as an underground facility. RECOMMENDATION Engineering recommends that a change from the recognized alignment, change from the recognized design concept, and all of the issues related thereto should be addressed in an amendment to the existing development agreement. For example, it must be clearly identified that the additional cost of changing from the open waterway concepts to the underground facility would be the responsibility of the developer. ACTION TO BE TAKEN Engineering respectfully requests authorization for City staff to negotiate an amendment to the development agreement between City and Highway 151 & 61, LLC. This would include provisions to realign the project as noted in the attached drawings and change it from an open waterway to an underground facility from the 16th Street Detention Basin through the Highway 151 & 61 property. This amendment to the development agreement would be presented to the City Council in January, 2007. Prepared by Deron Muehring, Civil Engineer II cc: Barry Lindahl, City Attorney Dawn Lang, Budget Director Jenny Larson, Budget Director David Heiar, Economic Development Director Steve Brown, Project Manager Deron Muehring, Civil Engineer II b? tJ WATE wAY x M F N r ES A•131- s+H1r) 6Y c t r soio.444 (Exi4 DET AMENDMENT NO. 1 TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND HWY 151 & 61 DEVELOPMENT, LLC This Amendment No. 1 ("Amendment No. 1") to Development Agreement between the City of Dubuque Iowa and Hwy 151 & 61 Development, LLC is entered into effective the day of , 2006, by and between the City of Dubuque, Iowa, a municipality ("City"), established pursuant to the Iowa Code and acting under authorization of Iowa Code Chapter 403, as amended ("Urban Renewal Act'), and Hwy 151 & 61 Development, LLC, an Iowa limited liability company ("Developer")with its principal place of business at Dubuque, Iowa. Recitals A. City and Developer entered into that certain Development Agreement dated for reference purposes as June 5, 2006 with respect to the former Smithfield real estate site; B. The parties desire to amend the Development Agreement as provided herein. Therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties do hereby agree as follows: 1. Amendment of Section 3.3 (Acquisition by City of Bee Branch Real Estate). Section 3.3 is hereby amended by deleting the date "November 30, 2006" from each place it appears in this section and replacing it with "December 31, 2006." 2. The parties acknowledge that Exhibit D to the Development Agreement (i.e., the Offer to Buy Real Estate and Acceptance with respect to the City's acquisition of 3.3 acres, more or less, for realigned Bee Branch storm sewer) shall have a closing date (if at all, as provided in such Offer) of January 15, 2007. 3. All other teens, conditions and provisions of the Development Agreement shall remain in full force and effect and are hereby ratified and confirmed by the parties hereto. IN WITNESS WHEREOF, the undersigned have executed and delivered the foregoing Amendment No 1 as of the date and year first above written. CITY OF DUBUQUE, IOWA HIGHWAY 151 & 61 DEVELOPMENT, LLC By By Roy D. Buol, Mayor Wayne A. Briggs, By Jeanne F. Schneider, City Clerk F:IWPDOCS\SendylBndUHwy 151 City Development Agrcemeni Amaidmem Na l.wpd