Dodds River Term. Twine C LeaseMEMORANDUM
January 15, 2002
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Dodds River Terminals, Inc. Lease Amendment
Public Works Director Mike Koch recommends that the City agree to terminate its
responsibility to provide rail access to Dodds River Terminals, Inc. from the north City
railroad siding, and in its place provide rail access to the new railroad siding south from
Dodds River Terminals, and dock, to the point where the siding joins the Chicago
Central and Pacific Railroad Tracks. It is further recommended that the City accept
ownership and maintenance of the newly-repaired railroad siding from the Dodds rail
terminal and dock, to the point where the siding joins the Chicago Central and Pacific
Railroad tracks.
Public Works Director Mike Koch also recommends that the City reimburse Dodds River
Terminals, Inc. in the amount of $8,464.16 (less Iowa sales tax) for its cost in the repair
of the southerly railroad siding. The City will, by lease agreement, provide the same
level of railroad maintenance that was provided on the northerly railroad siding.
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
TO:
FROM:
SUBJECT:
CITY OF DUBUQUE, IOWA
MEMORANDUM
January 16, 2002
Michael C. Van Milligen, City Manager
Michael A. Koch, Public Works Director
Dodds River Terminals, Inc. Lease Amendment
INTRODUCTION
Enclosed is an amendment to the Lease and Agreement between the City of
Dubuque and the Dubuque Twine Company (now known as Dodds River Terminals,
Inc.).
DISCUSSION
On April 10, 1979, the City entered into a Lease and Agreement with the Dubuque
Twine Company for the lease of 0.6 acres of property located at 20 Terminal
Street. The lease is scheduled to expire on March 31, 2008.
Paragraph 4 of the lease requires that whenever Dodds River Terminals, Inc. uses
the City's railroad siding to load and unload material, it shall pay to the City a sum
of $2.50 for each carload. In recent years rail access to this leased parcel has
been from a City-owned spur track north of Dodds River Terminals, beginning at
First Street and running along the southerly side of the Ice Harbor and down
Terminal Street.
Dodds River Terminals, Inc. has recently repaired an extension of the railroad siding
to the south, connecting to the railroad tracks owned by the Chicago Central and
Pacific Railroad, which Dodds River Terminals, Inc. is planning to use in lieu of the
northerly access. Because of older/lesser curve design standards, the northerly
tracks can no longer meet Dodds River Terminals, Inc. nor the railroad's needs.
The requested amendment to the Lease and Agreement provides that Dodds River
Terminals, Inc. will give up and yield its rights to rail access from the north. It also
provides that the City will accept and maintain the newly-repaired south railroad
siding from the Dodds rail Terminals and dock, to the point where the siding joins
Chicago Central and Pacific Railroad tracks.
Dodds River Terminals, Inc. is requesting reimbursement in the amount of
$8,464.16 (less Iowa sales tax), which was the cost of the repair of the trackage.
This trackage will replace the trackage to the north for Dodds' use, which is the
basis for the reimbursement request.
RECOMMENDATION
I would recommend that the City agree to terminate its responsibility to provide rail
access to Dodds River Terminals, Inc. from the north City railroad siding, and in its
place provide rail access to the new railroad siding south from the Dodds River
Terminals, and dock, to the point where the siding joins the Chicago Central and
Pacific Railroad tracks. I further recommend that the City accept ownership and
maintenance of the newly-repaired railroad siding from the Dodds rail terminal and
dock, to the point where the siding joins the Chicago Central and Pacific Railroad
tracks.
I further recommend that the City reimburse Dodds River Terminals, Inc. in the
amount of $8,464.16 (less Iowa sales tax) for its cost in the repair of the southerly
railroad siding; The City will, by lease agreement, provide the same level of railroad
maintenance that was provided on the northerly railroad siding.
ACTION TO BE TAKEN
The City Council is requested to approve the amendment to the Lease and
Agreement and to authorize the Mayor to execute the amendment on behalf of the
City Council.
MAK/vjd
FIRST AMENDMENT TO LEASE AND AGREEMENT
WHEREAS, the CITY OF DUBUQUE, IOWA, a Municipal Corporation, through
its Board of Dock Commissioners, entered into a Lease and Agreement with DUBUQUE
TWINE COMPANY, an iowa corporation and the predecessor to DODDS RIVER
TERMINALS, INC., on the 10th day of April, 1979, covering a parcel of real estate on
which was located the Municipal River-Rail Terminal and its dock; and
WHEREAS, said Lease and Agreement provided for the Lessee to have the use
of Lessor's railroad sidings adjacent to the premises to load and unload material; and
WHEREAS, at the time said Lease and Agreement were entered into, rail access
was provided to the property both from the north and from the south; and
WHEREAS, the parties are now desirous of amending said Lease to provide for
a clear understanding regarding rail access to the premises.
NOW, THEREFORE, IT IS AGREED by and between the parties hereto, as
follows:
1. That upon the effective date of this Amendment, the Lessee, Dodds River Terminals,
Inc. will utilize exclusively for rail service to the warehouse properties rail service that
runs south from the demised premises to the main line of the Chicago Central and
Pacific Railroad track and Dodds River Terminals, Inc., as Lessee, hereby gives up and
yields any right to rail access to its property from the north of the Municipal River
Railroad Terminal building and its dock.
2. That Paragraph 4 of the Lease and Agreement dated April 10, 1979, be deleted and
the following paragraph substituted in lieu thereof:
'~Nhenever the Lessee shall use the City-owned railroad siding south of the
Municipal Rail-Rail Terminal and its dock to the main line of the Chicago Central
and Pacific Railroad tracks, which are adjacent to the demised premises, to load
or unload material, it shall pay to the Lessor, in addition to annual rental
heretofore provided for herein, the sum of Two and 50/100 Dollars ($2.50) for
each carload or partial carload using said City-owned railroad siding, which total
amount shall be completed during each rent year and shall become due and
payable on the first day of April of each year during the term of this Lease."
3. It is further agreed that the City will maintain the south railroad right-of-way from the
Municipal Rail Terminal and its dock to the main line of the Chicago Central and Pacific
Railroad, all south of the Municipal River and Rail Terminal and its dock, and will have
no responsibility to Dodds River Terminals, Inc. to provide access to any railroad track
north of the Municipal River-Rail Terminal Building.
4. That there is attached hereto and by this reference made a part hereof, a drawing
which illustrates the location of the track, which the Lessee, Dodds River Terminals,
Inc., shall utilize and have access to, and which will be maintained by the City of
Dubuque.
shall remain in full force and effect.
In all other respects, the Lease and Agreement dated the 10th day of April, 1979,
Dated this day of
DODDS RIVER TERMINALS, INC.
An Iowa Corporation, Lessee
,2002.
CITY OF DUBUQUE, IOWA
A Municipal Corporation, Lessor
By:
Dennis P. Dodds, President
By:
Mawr
Attest:
City Clerk
Prepared by: Michael A. Koch, Public Works Director Address: 50 W. 13th Street, Dubuque, IA 52001-4864
RESOLUTION NO. 18-02
RESOLUTION APPROVING THE FIRST AMENDMENT TO LEASE AND
AGREEMENT BETWEEN DUBUQUE TWINE COMPANY AND THE CITY OF
DUBUQUE DATED APRIL 10, 1979
Whereas, Dubuque Twine Company entered intO a certain Lease and Agreement
with the City of Dubuque (City) dated April 10, 1979; and
Whereas, Dubuque Twine Company assigned the Lease and Agreement to
Dodds River Terminals, Inc. (Dodds) on June 12, 1995; and
Whereas, Dodds and the City desire to amend Paragraph 4 of the lease
regarding the use of the City-owned railroad siding currently utilized by Dodds; and
Whereas, Dodds proposes to give up and yield any right to rail access to its
leased property from the City-owned railroad siding north of Dodds and also proposes
that the City accept and maintain the newly-repaired south railroad siding from the
Dodds rail and dock, to the point where siding joins the Chicago Central and Pacific
Railroad tracks.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the First Amendment to Lease and Agreement is hereby
approved and the Mayor is authorized and directed to execute the First Amendment to
Lease Agreement and Agreement attached hereto.
Section 2. That the City reimburse Dodds the sum of $8,464.16 (less Iowa
sales tax) for its cost in the repair of the southerly railroad siding.
Section 3. The City Clerk is hereby authorized and directed to record a
certified copy of this Resolution and the First Amendment to Lease and Agreement in
the offices of the Dubuque County Recorder.
Passed, approved and adopted this 21st day of January, 2002.
Ann E. Michalski, Mayor Pro-Tern
Attest:
Jeanne F. Schneider, City Clerk
DODDS RIVER TERMINALS, INC.
Mr. Barry A, Lindahl
Corporation Counsel
196 Dubuque Bldg,
Dubuque,Ia 52001
20 TERMINAL ST. * P,O, BOX 3414 * DUBUQUE, IOWA 52004-3414
PHONE 319-$83-9703 · FAX 319-588-9702 ·
Dear Barry,
We have completed the minimum necessary track repairs required to provide rail service
to our facility at 20 Terminal St. This is rail service that we are and have been entiflad'm
through the provisions of our current leasehold, but have not had for some time now.
The pre-repair rail situation has been very costly to our company in the area of lost
business and revenues: Our most current loss recently occurred whereby we lost a
several car load coil steel shipment to another location because the loaded cars could not
be delivered to our location from either direction because of the track condition. We are
hopeful that we have not lost these accounts permanently, We will put maximum effort
into regaining their business. However opening the door to a competitor in this fashion is
· never a desirable situation.
Enclosed herewith you will fred lwo invoices for labor, materials and equipment
pertaining to tl~s job. I submit these invoices to you for payment at this time. These two
invoices represent about two thir& of the total project cost. The other third of the cost
associated with this repair.project was incurred by our company through the use of our
equipment, personnel and materials. We did all of the work we could, given our limited
rail eoustruction expertise and specialty equipment constraint. This also included the
acquisition of the new rail and rail ti~s, it's pickup, transfer and delivery on our semi's to
the project site. We have not submitted an invoice for this work to the city and in fact will
offer these costs up as "goodwill" to the city.
The track repair has been inspected 3 times by official railroad personnel and has been
given the o.k. it is open for city inspection at all times
Thank you for your understanding and cooperation in this matter Barry.
.t Personal Regards,
Dcumis P, Dodds
COMPLETE TRANSFER SERVICE BARGE - RAIL - TRUCK * WAREHOUSING & OUTSIDE STORAGE