Hwy 151 & 61 Development Amendment No. 1
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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
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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
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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
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