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Rainbo Oil_First Amendment to Lease Agreement (16th Street)Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: First Amendment to Lease Agreement with Rainbo Oil Co. DATE: October 10, 2013 Dubuque band AI- America City 1 2007 • 2012 • 2013 On January 22, 2013, the City Council authorized a lease agreement with Rainbo Oil for the construction of a gas station, CNG fuel pump, convenience store and restaurant, totaling $5 million in investment, at the intersection of 16th Street and Kerper Boulevard. The term of the lease was 25 years with three, 5 -year option periods at a price of $37,000 per acre. There was an estimated 3.25 acres in the lease, amounting to 12 monthly payments of $10,020.83. However the acreage total was subject to survey prior to closing. Additionally, the property was not described or platted at the time of the lease. Platting was recently completed on the property, and the acreage has been adjusted to approximately 3.113 acres. The reduction is largely to accommodate a 10 foot shared use path along the eastern boundary of the site that, in accordance with the lease, will be constructed by Rainbo, but will not be maintained within their lease footprint. This amendment adjusts the sections of the lease detailing the acreage and monthly rent due, as well as provides the Exhibit A Legal Description and Exhibit B Plat. Economic Development Director Maurice Jones recommends City Council approval of the First Amendment to the Lease Agreement with Rainbo Oil Co., d /b /a Kwik Stop C- Stores for a portion of the 16th Street corridor property. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Maurice Jones, Economic Development Director 2 Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: Maurice Jones, Economic Development Director SUBJECT: First Amendment to Lease Agreement with Rainbo Oil Co. DATE: October 7, 2013 Dubuque kattil All- America City 1 l'r 2007 • 2012 • 2013 INTRODUCTION This memorandum provides for City Council consideration a First Amendment to the Lease Agreement with Rainbo Oil Co., DBA Kwik Stop C- Stores, for a portion of the 16th Street corridor property. BACKGROUND On January 22, 2013, the City Council authorized a lease agreement with Rainbo Oil for the construction of a gas station, CNG fuel pump, convenience store and restaurant, totaling $5 million in investment, at the intersection of 16th Street and Kerper Boulevard. The term of the lease was 25 years with three, 5 -year option periods at a price of $37,000 per acre. There was an estimated 3.25 acres in the lease, amounting to 12 monthly payments of $10,020.83. However the acreage total was subject to survey prior to closing. Additionally, the property was not described or platted at the time of the lease. DISCUSSION Since the lease execution, Rainbo Oil has initiated construction and will begin making payments on the lease after January 1, 2014. Platting was recently completed on the property, and the acreage has been adjusted to approximately 3.113 acres. The reduction is largely to accommodate a 10 foot shared use path along the eastern boundary of the site that, in accordance with the lease, will be constructed by Rainbo but will not be maintained within their lease footprint. This amendment adjusts the sections of the lease detailing the acreage and monthly rent due, as well as provides the Exhibit A Legal Description and Exhibit B Plat. RECOMMENDATION I recommend that the City Council authorize the First Amendment to the Lease Agreement between the City of Dubuque, Iowa and Rainbo Oil Co. DBA Kwik Stop C- Stores. ACTION STEP The action step for the City Council is to adopt the attached resolution and lease amendment. Attachments F: \USERS \Econ Dev \16th Street Commercial Site \Rainbo \Lease Agreement \20131007 Lease agreement memo.doc Prepared by Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583 -4113 RESOLUTION NO. 305 -13 APPROVING THE FIRST AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND RAINBO OIL CO. DBA KWIK STOP C- STORES Whereas, the City of Dubuque, Iowa (City) and Rainbo Oil Co. DBA Kwik Stop C- Stores entered into a Lease Agreement dated for reference purposes the 22nd day of January, 2013; and Whereas, in Section 1.1 of the Lease Agreement, the parties agreed to a survey and platting of the Demised Premises; and Whereas, in Section 2.1 of the Lease Agreement, the Lessee agreed to pay the Lessor monthly a per acre amount; and Whereas, the City has prepared a Plat of Survey showing the Demised Premises and revised acreage totals; and Whereas, the parties now agree to amend the Lease Agreement as set forth in the attached First Amendment to Lease Agreement; and Whereas, the City Council believes it is in the best interests of the City of Dubuque to approve the First Amendment to Lease Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF DUBUQUE, IOWA AS FOLLOWS: Section 1. The First Amendment to Lease Agreement between the City of Dubuque and Rainbo Oil Co. DBA Kwik Stop C- Stores attached hereto is hereby approved. Passed, approved and adopted this 21st day of October, 2013. 0 LI oy D. Buol, Mayor Attest: F: \USERS \Econ Dev \16th Street Commercial Site \Rainbo \Lease Agreement\20131021 ResolutionApprovingFirstAmendmentToLeaseAgreement .doc FIRST AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND RAINBO OIL CO. DBA Kwik Stop C- Stores This First Amendment to Lease A r e ent (the Lease Agreement), dated for reference purposes thi - /day of , 2013, is made and entered into by and between the City 6f Dubuque, Iowa, an Iowa municipal corporation , and Rainbo Oil Co. DBA Kwik Stop C- Stores, an Iowa corporation ). Whereas, the City of Dubuque, Iowa (City) and Rainbo Oil Co. DBA Kwik Stop C- Stores entered into a Lease Agreement dated for reference purposes the 22nd day of January, 2013; and Whereas, in Section 1.1 of the Lease Agreement, the parties agreed to a survey and platting of the Demised Premises; and Whereas, the City has prepared a Plat of Survey; and Whereas, the parties now agree to amend the Lease Agreement as set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN LESSOR AND LESSEE AS FOLLOWS: Section 1. Section 1.1 of the Lease Agreement is hereby amended to read as follows: 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 to and made a part of this Lease (3.113 acres located at the corner of 16th St. and Kerper Blvd.) 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 (the Demised Premises), to have and to hold for an initial term commencing as of the 1St day of January, 2013 (hereinafter the "Commencement Date ") and ending at midnight on December 31, 2038 (the Initial Term), subject to all of the terms, covenants, conditions and agreements contained herein. Lessor hereby grants Lessee three (3) consecutive options to extend the Initial Term of the Lease (each an "option to extend ") in accordance with the terms and conditions of 100713baI this Section 1.1 and otherwise upon the same terms and conditions contained in this Lease. The first option to extend ( "First Option ") shall be an option to extend the term for a period of five (5) years ( "First Extension Term "), commencing immediately upon the expiration of the Initial Term. The second option to extend ( "Second Option "), shall be an option to extend the term for an additional period of five (5) years ( "Second Extension Term ") commencing immediately upon the expiration of the First Extension Term. The third option to extend ( "Third Option "), shall be an option to extend the term for an additional period of five (5) years ( "Third Extension Term ") commencing immediately upon the expiration of the Second Extension Term. The First Extension Term, Second Extension Term, and Third Extension Term are collectively the ( "Extension Term "). Lessee shall exercise the First Option, if at all, by written notice delivered to Landlord at least 18 months prior to the expiration of the Initial Term. Thereafter, Tenant shall exercise successive Extension Term options, if at all, by written notice delivered to Lessor at least 18 months prior to the date of expiration of the immediately preceding Extension Term. Section 2. Section 2.1 of the Lease Agreement is hereby amended to read as follows: SECTION 2. RENT 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 $37,000 per acre for 3.113 acres in twelve equal monthly payments of $9,598.42 commencing on January 1, 2014 or the date of the issuance of the Certificate of Completion for the Improvements required in Section 3.2(1), whichever first occurs, and on the first day of each month thereafter. (The first and last month's Rent will be prorated for partial months, if applicable.) Section 3. Exhibits A and B of the Lease Agreement are deleted and Exhibits A and B attached hereto are substituted in lieu thereof. LESSOR: LESSEE: CITY OF DUBUQUE, IOWA By: RAINBO OIL CO. DBA Kwik Stop C- Stores By: /" Roy D. ol, Mayor Paul M Fahey, Owner 2 Attest: Ke irnstahl, City C 3 EXHIBIT A LEGAL DESCRIPTION Lot 1 -1 of Bee Branch Subdivision No. 2 in the City of Dubuque, Iowa 4 EXHIBIT B PLAT 5 aqc 1 el „ Pic: ally: N3txgN. I4B01)4031.411 19P1R.DtU-R.a5202 ItiIcNVV forR*xtdr PLAT OF SURVEY OF: ��������� Lor1.1 NVU LOT 2-10f EOE URA1 1EU9W131: r•A 2. SFr n7 Nill-_CITYCe W WOI.D.IM'A_'.'01R COA'FRISE}OF: LOT 1 Cf Ol1U WMCIbtU3fl OI110.2. 111* '''ryyl.ai p'LYY'''L'��°'•.°°p }'rf�•" ^ CITY OF DUB..WE10MF.EXCFFTTUTCORTIrJe Fwfr T: °w:'yl:r l.,: r1. ra TARN n RI011 UP vVI•UIrOBE9 UE9C- NEE]AS LOT "1.201$-00014663 OF GEE EPPNCN SUMIOSICN NC. 2R1019CCO AS 'LE H0.221}1U1T1MO LOTC Of BEEER•NCN WE D149P11 ND2 NFCORCR)ASRLE1O. 2OIR1399LIIIT1.0 MICE 11111E a•FCE Of THEOUBWVECOUVTY RECORDER Mkt 1. Sony R.quallol W COy 2 Own• r 0y d 0ub.4ue a NI /ENnrr4 ray In ketnJd.cbv,h a. C.ngy LnMM1 In he MN. x1!•3hP11. n tub -se CaNtba9 %1 M •LM dGMq-t Pend 0 IRV 1•111 SY /IMSwtM 19. 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I MC 4;: y(i MC CM M31 1 Ay. ec vr.L •a ]tax. rxe-- ekavaf CE5 I / T= • i 11 r-• / % r�11'TflfE la i p // /. 1 1[.. t::.... yM plV NT 5 a/ %q.1G y,y I (i g111M. • / 61G0'C.tV ltl -.�/-71,1 // 1 !F ,far. a l9 - •% // j / ,:71I (/ „,,,-e„,-- //w '% //101, 5a. R._ 1t 9 // / // - !!1F'' Bai A(4t • • l ` CQ — y` Swen. L O EETt PLSTICGPilx126 " LEOFIII M jRmNVOI TIY /CPPAein REBMNTrnnnu.• J ' �.� :n :- ' } f ~ . ,`1 .,-•-• 15-:ro .•.1 .-. s . R0V. RIGHTOTWAT (101.00) REWRDEDDIE • CAD0.KNAIL • FOJtO NEON COUCIETE 41DYUJIF11T II l'r rT ' - •• N.• `.ina M .. l,� j .....r wM.•..•.f ....Y. ..o....... L.e s..npaMW M4tl IvnT•I 'NJI�f�l�• 4a —GS I I m02t2U12tm11 CITY a.a 01' DUBUQUE CHOINCCPUNO OtY/•Y•Mttl au•Yi .ntiaeyt'.1�1 a'. nYT"fart: v..n T. 1.1 ; A • .. T Cnra nL t ur - ,............ r u•a.1w rml.w IS.r.n. • • n nfw lbea•e: x013 - ODD24C43 Oar 6 trip's re q SURVEYOR'S CERTIFICATE 1, Rueseli N. Kieffer, a Duly Licensee Land Swv yon in the Slate of lava, do hereby certify that the following real estate was surveyed and plated by rrc or under rey direct personal supervision, To Wt. Lot 1 01 Dee Branch Subdivision N. 2, in the City of Dubuque. lava, exceptlng those portions taken for righl-of-way purposes described se Lot B of Bee Branch Subdivision No. 2 and Lot C of Bee Branch Subdivision No. 2 as recorded in the office of the Dubuque County Recorder, in the City of Dubuque, Dubuque Dourly, Iowa. This survey was performed ear the purposes of subdMding and platting said reel estate henceforth to be known as Lot 1 -1 and Lot 2.1 of Bee Branch SubdMslon No. 2. In the Chy of Dubuque, Dubuque County, Iowa. Total area of Lot 1 -1 and 2-1 of Sae Branch SubdNislon No. 2 Is 35.045 aces. Total sneavf tot 1 -1 is 3.113 acres. Total area el Lot 2 -1 is 31.932 acres. Ph Lot areas ara, more or less, and all Lots ere subject to easements, reservations, restrictions, end d9Ms- cr-way of record and not cf record Me plot of which Is reacted hereto and mode pen of this certificate. BY: 'I -1.4/1 JCS 08-23 -2013 Russell N. Kieffer Licensed Land 3uveyer License I4o. 18128 Date license Renewal Date: 1213112014 2 HL Nrt.r, 94I%- :c011(.J a.q, 7 OWNER'S CONSENT Dubuque, Iowa ",).p 4 2013 The foregoing PIat of Lot 14 and Lot 2-1 of Bee Branch Subdiv[Mon No. 2. In the City of Dubuque, JDu 0 »petty, Iowa, Is made w81 the free Consent and in axadanoe vilh the desires of the tai githltd''ay rB and proprietors of said real estate. " • LP. SIX*. MayyOr Ant 'r n E. FY ^. N'ty Clerk % . •n.. • C • ' _• 6f.itS:0 •FpUrIty .01 On thISa7N2s' of day iliiii.der A.D. 201a before me, a Notary Public in and for the County of Dubuque and 6 of lain, personalty appeased Roy D. Buol and Kevin S. FirrsteN, to me - personallyk nowoweia ,_baingduly.avwrndidsey.thatthe said RoyA- SuoLiANImccand.lheutddKahn S. Finslahl is Gib/Clerk of the City of Dubuque. lov& and that the seal effaced to eta above instrument Is the corporate aeel of tha City of Dubuque, Iowa. and that said Instrument was signed end sealed on behalf of the said City of Dubuque, Iowa, by au0roriy of the Qty Caunce of said city and the said Roy D. Bud and Kevin S. Fenstahl aC9galedge me execuUcn of said instrument to be Lire voluntary ad and dead of said City of Ottawa. Iowa. by It voluntarily executed. Notary Public in the Stale of Iowa By: Comm BcbnNUmbOr7ISOSS htsCOnnialcn Does ) / 3 8 My Cammission Expires fa-)3•-71 xa2 Bm2e : erl3- ):01463 Sp: 3 LEE$EES CONSENT Dubuque. lase 2013 Thekxegoing Plel d &lrvoy: Lot 1 -1 and Lot 21 of Boo Brands SubdMsuen N0.2, 11 IMCty of Dubuque. DcbuqucCouih', lows, is medexdlthcfrce cereal rA in wartime* nit the dacha claw undersigned fence demo reaatale. STATE OF IOWA COUNTY OF DUBUQUE ) On this 3o day c ' 2013, before me, the undersigned, e Notary Fpblte I and for eakl Slate, personeny appeared ZRI Keyway co me personally known. OR _ proved to me on to basis of salbfaebly «Melee to b0 the person(s) Whose name(s) isyue subsctbed to the within Inthument and aUOowkxged to me mat he'sheAhey executed me same 11 IS-NMAThelr authorized capaciy(ies), and tatty hkfherMhetr ognat re(s) on the inetnanent the peleon(s) acted, executed the instrument um, mar Isaoa RAINBO Ca CO. ORA 16A(k Slap ree Br Yie <Rus/dpih Val SWAN M.I01AMEo CvrmaimNawr'+so4N M Corn Cr:. O +e.lx Cubnglle, Iowa l tilaat Intl.1..nv ex:San M xtn mot Ialnwe' +.O N[ee111.01aN n13aea ima CAPACITYCLAIMED BY SIGNER INDNIDUAL J _QORPORATE OFFICER(S) V ict Prct,, c.)t new {CORP SEAL) PFFIXED NO SEAL PROCURED _..3ARTNER(S) _UNITED _GENERAL _ATTORNEY•IN'FACT _TRUSTEE'S) _GUARDIATi!COIISERVATOR OTHER SIGNER IS REPRESENTING RatrxbO ©.1 Co rn.x3n.1 rlmeanenww sere ( CJTY COUNCIL 2013 The undersigned, Mayor and Ceti( of the Cl y al Dubuque, Ise, M hereby teddy 51311he toreros plat of Swale Let 1.1 and Let 24 M Bee Brands Sulawmen No. 2, In the City of Dubuque, Dabuque Count , Iowa. hoe keen Red in the Ace of IM Clerk of the C Iy of DlkUque, and Mel by ResoI, n Na-` DebugreCky Council approved reidplat 4 9 A 6 —� Rnyf Rod h1 •,.:, bgf Dar s IN Clue of tho Mot Dibuq +e •• tw ms.,, JeiLelel4R4 Am! < trues 3 of T pl./MINING SFRVICES D.tuque, Iowa Aut 30 2013 The foregoing Plat of Survey: Lot 1 -1 end Lot 2 -1 of Boo Branch Subdivision No. 2, it the City of Dubuque, Dubuque County, Iowa, or within the two-mile j°asdidin or the City of Dubuque, Iona, as defined under Section 354 of the Code of Iowa. has been reviesed by Ilse Cip Fanner, for desIreal d Cie Ciy of Dubtme in accordance with Chapter 42 of He Cip of Dubuque Code of Ordinances, and said eppravd hes been encased herein on Inedd nr6T When Anne. x Laura Cerelens Planting Saxon Manager S:OUNTY AUDITOR Dubuque, Iowa 4, 1111" `. s c . 2013•'.. ), The brewing Plat of Survey. Lot 14 and Lot 24 of Bee Branch BubdNlaforl'Nap, Wbuque County, low° was cared d record in the [Ace d the Olkuque'Sustytgudda1titstS of 5.e1a.,,.ber 2013. We approve thewtduiefon name oraiOe to Nsreccrdedyii" •- ? .r CITY ASSESSOR (MMUS, Iowa 9` 2013 The foregoing Plat d Survey. Lot 14 and Lot 24 of Bea Branch Subdivision No. 2, in etc Cily d Dltraiqua. Dubuque Carty, lova was tutored of record in the office of the City Assessor of the CRf of Dubuque. low, this .. of Sidon L. 2013 .� Dubuque, lone RECORDER'S CFRTTFICATF Richard A. En n Dubuque Cily Assessor - 5 .2013 The foregoing Plot of Survey. Lot 1-1 and Lot 2 -1 of Bee Brandll•Subdlvlslnn No 2, in the Cc/ d Dttoque. DubuqueCounty, lawa. has been reviewed by the Dubuque Caunt' Reorder. \`ry a I �,4AATKUJEC&J yFynn ThUdav yj I' Recorder of Dubuque County, lava . TO Wit e I ifl A 1u,1,u b ' 6010 5 10 n:. amber: 701S 03014E63 eta. e ( .. RNDatd M' RNs±aK'Mer CN Of Rrbuaje jjj' L1316.f1161“CICLLAIA:IJ52901(a0) 5$e'i27d 'taxi lot R. NereK est. CO,/ of Dubue,e. SO W. 131h areal. Cubuq a, A52041 Hwy 39041270 RESOLUTION NO. 276-13 RESOLUTION APPROVING PLAT OF SURVEY OF LOT 1 -1 AND LOT 2-1 OF BEE BRANCH SUBDIVISION NO. 2 IN THE CITY OF DUBUQUE, DUBUQUE COUNTY, IOWA Whereas, thsre has been presented to the City Counca of the City at Dubuque, Iowa, a plat dated the 23rd day of August. 2013, prepared by the City of Dubuque Engineering Department dividing Lot 1 of Bee Branch Subdivision No. 2 except those portions taken for Right of Way, to be hereinafter kncmn as Lot 1 -1 and Lot 2 -1 of Bee &rands Subdhslon No. 21n the Cty of Dubuque, Dubuque County, Iowa; end W,ereas, said plat conforms to ti's km and statutes pertaining thereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE. IOWA: Section 1. That the plat dated the 23rd day of AtgUSL 2013. prepared by the Cty of Dubuque Engineering Depa'611ent reIaWo to the reel estate hereinabove described bo and Iho Sarre Is hereby approved, and the Mayor and City Clerk be and they are hereby aulllodzec and directed to execute sad plat for and on behalf of the Cdy of Dubuque. Iowa. Section 2. T rat the CityClerk to and Is hereby au:her¢ed and o/rected to Ile said plat and Willed copy of els resolution in Ilv2 offrx of the Recorder in and fcr Dubuque County. Iona. Passed. approved end adopted this 3rd day of September 20 Attest 11 D. Bud, Mayor rS ream =3 :COWS, up: CERTIFICATE of the CITY CLERK STATE OF IOWA f SS' COUNTY OF DUBUQUE y 1, Kevin S. F'rnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk otlhe -City of-Dubuque; tows. tnihe -Countyaforesaid; and as such City Clerk, t have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 276 -13 is a true and correct copy of the original. -- In Tesdn onyWhereof - I- hereuito set my hand and official seal of the City of Dubuque. Iowa. Dated at Dubuque, Iowa, on this 4th day of September, 2013. 12 'll- *TM -' etl, >r01ZAl5 'C.1. 1