Yacht Basin Lease AmendmentsMEMORANDUM
January 17, 2002
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Dubuque Yacht Basin Lease Amendments
The City Council had previously approved amendments to Dubuque Yacht Basin leases
extending them through March 31, 2031, however, the extensions failed to reference
the leased limits of the three leases. Public Works Director Mike Koch is recommending
approval of the corrected Lease Amendments.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Michael A. Koch, Public Works Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
January 16, 2002
TO:
FROM:
SUBJECT:
Michael C. Van Milligen, City Manager
Koch, Public Works Director
Michael
A.
Dubuque Yacht Basin Lease Amendments
INTRODUCTION
On December 17, 2001, the three existing leases between the City of Dubuque and the
Dubuque Yacht Basin were modified to extend the expiration date of all three leases to
March 31,2031.
DISCUSSION
The Lease Amendments providing for such extensions, however, failed to reference the
leased limits of the three Lease Agreements.
As a result, the Dubuque County Recorder's office has declined to record the Lease
Amendments until such time as either a legal description or a boundary survey is
incorporated into the Lease Amendments.
RECOMMENDATION
Enclosed are the corrected Lease Amendments which now include a boundary
description of the leased premises for each Lease Agreement. The amendments are
otherwise identical to the amendments approved on December 17, 2001.
The corrected Lease Amendments included are:
1. The Fourth Amendment to Lease Agreement between Dubuque Yacht Basin,
Inc. and the City of Dubuque.
2. The Second Amendment to Lease Agreement between Dubuque Yacht Basin,
Inc. and the City of Dubuque.
3. Fourth Amendment to Lease Agreement between Dubuque Yacht Basin, Inc. and
the City of Dubuque.
I recommend approval of the corrected Lease Amendments.
ACTION TO BE TAKEN
The City Council is requested to authorize the Mayor to execute all three corrected
Lease Amendments.
MAK/vjd
FOURTH AMENDMENT TO LEASE AGREEMENT
BETWEEN DUBUQUE YACHT BASIN, INC. AND
THE CITY OF DUBUQUE
This Fourth Amendment to Lease Agreement is made and executed this
__ day of , 2001, A.D., between DUBUQUE YACHT BASIN,
INC., a corporation organized and existing under the laws of the State of Iowa,
with its principal place of business in Dubuque, Iowa, (YACHT BASIN) and the
CITY OF DUBUQUE, IOWA, a municipal corporation organized and existing under
the laws of the State of Iowa, through its duly authorized City Council (CITY):
WHEREAS, YACHT BASIN and CITY have heretofore entered into a Lease
Agreement dated April 8, 1970, as amended by a First Amendment dated
November 3, 1970, a Second Amendment dated February 12, 1975, and a Third
Amendment dated May 4, 2000, referred to collectively as the Lease Agreement
for the leased premises as follows:
A part of an unplatted slough and parts of Mineral Lots 298 and 299 all in
Section 19, T89N, R3E, 5th P.M. in the City of Dubuque, Dubuque County, Iowa,
more particularly described as follows:
Commencing as a point of reference at the northeast corner of Section 19,
T89N, R3E, 5th P.M., Dubuque County, Iowa;
Thence S 88° 37'20"W 654.95 feet along the northerly line of said Section
19 (this is an assumed bearing for this description only);
Thence S 68°05'00"W 1798.85 feet to a point;
Thence S 21° 53'20"E 67.53 feet to an existing iron pipe at the
northeasterly corner of Lease Area A, said point being the point of beginning;
Thence S 68° 05'00"W 678.00 feet along a line parallel to 16th Street
extended;
Thence S 21° 53'00"E 697,00 feet;
Thence S 53° 58'00"E 1087.30 feet;
Thence N 35° 44'05"E 326.95 feet;
Thence N 38° 31 '00"W 464.28 feet;
Thence N 51° 29'00"E 60.12 feet;
Thence N 21° 55' 30"W 349.92 feet;
Thence S 68° 06'40"W 100.00 feet;
Thence N 21° 53'20"W 631.56 feet to the point of beginning, containing
21.18 acres, more or less, subject to easements of record and not of record, as
shown by Lease Area A on the exhibit attached to the Third Amendment to Lease
Agreement; and
WHEREAS, CITY and YACHT BASIN now desire to further amend the Lease
Agreement to extend the termination date from March 31, 2020, to March 31,
2031.
NOW, THEREFORE, in consideration of One Dollar (91.00) and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Lease Agreement is hereby amended as follows:
1. Article (1) of the Lease Agreement is deleted and the following
substituted in lieu thereof: The term of the lease IS HEREBY EXTENDED FROM
March 31, 2020, to March 31, 2031. For the period through March 31, 2020, the
annual rates shall be as provided for in the April 8, 1970 Lease Agreement. For the
period commencing April 1, 2020, and ending on March 31, 2031, the annual rent
for the leased premises shall be the fair market rental as agreed by the parties.
If the parties cannot agree to the fair market rental at least ninety (90) days
prior to March 31, 2020, they shall jointly appoint an MAI real estate appraiser to
determine the market rate. If the parties cannot agree on an appraiser, each shall
appoint its own MAI appraiser and the two appointed by the parties shall select a
third. The average of the fair market rent determined by the three appraisers shall
be the annual rent for the period commencing April 1, 2020 and ending on March
31, 2031. The appraisal reports shall be completed in accordance with the current
"Uniform Standards of Professional Appraisal Practice" as promulgated by the
Appraisal Standards Board of the Appraisal Foundation. The annual rent shall be
paid in four (4) equal installments by not later than the first day of April, August,
and December.
2, All other terms and conditions of the Lease Agreement shall remain in
full force and effect,
Attest by:
CITY OF DUBUQUE
Jeanne F. Schneider, City Clerk
DUBUQUE YACHT BASIN
Donald P. Shanley
President
SECOND AMENDMENT TO LEASE AGREEMENT
BETWEEN DUBUQUE YACHT BASIN INC. AND
THE CITY OF DUBUQUE
This Second Amendment to Lease Agreement is made and executed this
__ day of , 2001, A.D., between DUBUQUE YACHT BASIN,
INC., a corporation organized and existing under the laws of the State of Iowa,
with its principal place of business in Dubuque, Iowa (YACHT BASIN) and the CITY
OF DUBUQUE, IOWA, a municipal corporation organized and existing under the
laws of the State of Iowa, through its duly authorized City Council (CITY).
WHEREAS, YACHT BASIN and CITY have heretofore entered into a one
Lease Agreement dated February 5,1974, as amended by a First Amendment dated
May 4, 2000, referred to collectively as the Lease Agreement for the leased
premises as follows:
A part of an unplatted slough and parts of Mineral Lots 298 and 299 all in
Section 19, T89N, R3E, 5th P.M. in the City of Dubuque, Dubuque County, Iowa,
more particularly described as follows:
Commencing as a point of reference at the northeast corner of Section 19,
T89N, R3E, 5th P.M., Dubuque County, Iowa;
Thence S 88° 37'20"W 654.95 feet along the northerly line of said Section
19 (this is an assumed bearing for this description only);
Thence S 68°05'00"W 1798.85 feet to a point;
Thence S 21° 53'20"E 67.53 feet to an existing iron pipe at the
northeasterly corner of Lease Area A, said point being the point of beginning;
Thence S 68° 05'00"W 678.00 feet along a line parallel to 16th Street
extended;
Thence S 21 ° 53'00"E 697.00 feet;
Thence S 53° 58'00"E 1087.30 feet;
Thence N 35° 44'05"E 326.95 feet;
Thence N 38° 31 '00"W 464.28 feet;
Thence N 51° 29'00"E 60.12 feet;
Thence N 21° 55' 30"W 349.92 feet;
Thence S 68° 06'40"W 100.00 feet;
Thence N 21° 53'20"W 631.56 feet to the point of beginning, containing
21.18 acres, more or less, subject to easements of record and not of record, as
shown by Lease Area B on the exhibit attached to the First Amendment to Lease
Agreement; and
WHEREAS, CITY and YACHT BASIN now desire to further amend the Lease
Agreement by extending the termination date of March 31, 2024, to March 31,
2031.
NOW, THEREFORE, in consideration of One Dollar ($1.00) and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Lease Agreement is hereby amended as follows:
1. Article 5 of the Lease Agreement is deleted and the following
substituted in lieu thereof: The term of the lease is hereby extended from March
31, 2020, to March 31, 2031.
For the period through March 31, 2020, the annual rates shall be as provided
for in the February 5, 1974 Lease Agreement. For the period commencing April 1,
2020, and ending on March 31, 2031, the annual rent for the leased premises shall
be the fair market rental as agreed by the parties.
If the parties cannot agree to the fair market rental rate at least ninety (90)
days prior to March 31, 2020, they shall jointly appoint an MAI real estate
appraiser to determine the market rate. If the parties cannot agree on an appraiser,
each shall appoint its own MAI appraiser and the two appointed by the parties shall
select a third. The average of the fair market rent determined by the three
appraisers shall be the annual rent for the period commencing April 1, 2020 and
ending on March 31, 2031. The appraisal reports (including definitions used) shall
be completed in accordance with the current "Uniform Standards of Professional
Appraisal Practice" as promulgated by the Appraisal Standards Board of the
Appraisal Foundation. The annual rent shall be paid in four (4) equal installments by
not later than the first day of April, August, and December.
All other terms and conditions of the Lease Agreement shall remain in full
force and effect.
Attest by:
CITY OF DUBUQUE
Jeanne F, Schneider, City Clerk
DUBUQUE YACHT BASIN
Donald P. Shanley
President
FOURTH AMENDMENT TO LEASE AGREEMENT
BETWEEN DUBUQUE YACHT BASIN INC. AND
THE CITY OF DUBUQUE
This Fourth Amendment to Lease Agreement is made and executed this
__ day of , 2001, A.D., between DUBUQUE YACHT BASIN,
INC., a corporation organized and existing under the laws of the State of Iowa,
with its principal place of business in Dubuque, Iowa, hereinafter referred as
"YACHT BASIN", and the CITY OF DUBUQUE, IOWA, a municipal corporation
organized and existing under the laws of the State of Iowa, through its duly
authorized City Council, hereinafter referred to as "CITY";
WITNESSTH: Whereas, YACHT BASIN and CITY have heretofore entered
into one certain lease agreement dated November 23, 1987, as amended by a First
Amendment dated December 21, 1987, a Second Amendment dated January 18,
1988, and a Third Amendment dated May 4, 2000, referred to collectively as the
Lease Agreement for the leased premises as follows:
A part of an unplatted slough and parts of Mineral Lots 298 and 299 all in
Section 19, T89N, R3E, 5th P.M. in the City of Dubuque, Dubuque County, Iowa,
more particularly described as follows:
Commencing as a point of reference at the northeast corner of Section 19,
T89N, R3E, 5th P.M., Dubuque County, Iowa;
Thence S 88° 37'20"W 654.95 feet along the northerly line of said Section
19 (this is an assumed bearing for this description only);
Thence S 68°05'00"W 1798.85 feet to a point;
Thence S 21° 53'20"E 67.53 feet to an existing iron pipe at the
northeasterly corner of Lease Area A, said point being the point of beginning;
Thence S 68° 05'00"W 678,00 feet along a line parallel to 16t~ Street
extended;
Thence S 21° 53'00"E 697.00 feet;
Thence S 53° 58'00"E 1087.30 feet;
Thence N 35° 44'05"E 326.95 feet;
Thence N 38° 31 '00"W 464.28 feet;
Thence N 51° 29'00"E 60.12 feet;
Thence N 21° 55' 30"W 349.92 feet;
Thence S 68° 06'40"W 100.00 feet;
Thence N 21° 53'20"W 631.56 feet to the point of beginning, containing
21.18 acres, more or less, subject to easements of record and not of record, as
shown by Lease Area C on the exhibit attached to the Third Amendment to Lease
Agreement; and
WHEREAS, CITY and YACHT BASIN now desire to further amend the Lease
Agreement from a termination date of February 5, 2024, to March 31, 2031.
NOW, THEREFORE, in consideration of One Dollar ($1.00) and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the aforesaid Lease Agreement between YACHT BASIN and CITY
dated November 23, 1987, and as amended by a First Amendment dated
December 21, 1987, a Second Amendment dated January 19, 1988, and a Third
Amendment dated May 4, 2000; is hereby amended as follows:
1. Article 1 of the Lease Agreement is deleted and the following
substituted in lieu thereof: The term of the lease is hereby extended from February
5, 2024 to March 31, 2031. For the period through February 5, 2024, the annual
rates shall be as provided for in the November 23, 1987 Lease Agreement. For the
period commencing February 6, 2024, and ending on March 31, 2031, the annual
rent for the leased premises shall be at the then current fair market rates as agreed
by the parties or as determined by the following process.
If the parties cannot agree to the fair market rental rate at least ninety (90)
days prior to February 5, 2024, they shall jointly appoint an MAI real estate
appraiser to determine the market rate. If the parties cannot agree on an appraiser,
each shall appoint his own MAI appraiser and the two appointed by the parties
shall select a third. The average of the fair market rent determined by the three
appraisers shall be the annual rent for the period commencing February 6, 2024
and ending on March 31, 2031. This appraisal report (including definitions used)
shall be completed in accordance with the current "Uniform Standards of
Professional Appraisal Practice" as promulgated by the Appraisal Standards Board
of the Appraisal Foundation. The annual rent shall be paid in four (4) equal
installments by not later than the first day of April, and the first day of each quarter
thereafter.
All the terms and conditions of the lease agreement dated November 23,
1987, as amended, shall remain in full force and effect.
Attest by:
CITY OF DUBUQUE
Jeanne F. Schneider, City Clerk
DUBUQUEYACHTBASIN
Donald P. Shanley
President