Dubuque Southgate Investments Ltd._Daniel Mueller LetterDubuque Southgate Investments Ltd.
10753 Woodland Height Road
Dubuque, Iowa 52003-9455 0
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November 27, 2007 ~ ~
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Honorable Mayor Roy Buol and City Council Members ~~
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City of Dubuque D ~~ ~
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Dubuque, Iowa 52001-4864
Re: Dedication of Dubuque Southgate Streets to the City of Dubuque
Dear Mayor and Council Members:
I would like to provide some background information regarding the development of
Dubuque Southgate's Property for consideration in our requested acceptance of our
streets. I would appreciate it if you give these facts consideration when voting on this
requested dedication.
Dubuque Southgate Investments Ltd., incorporated in 1987, purchased 47 acres of
property at the southeast corner of the Hwy 151 / 61 and 52 intersections near Key West
and began working with the City to develop the property for commercial business. We
requested to be annexed to the City, and worked with City Engineering and Planning and
Zoning staff with site design. We were advised to obtain a PUD zoning classification as
this was to be a commercial development with multiple businesses. We were advised this
was the way all such future developments were to be and that as such the street would be
private. We followed this advice and obtained the PUD zoning with approval for highway
businesses under the C-3 classification.
Being first to begin property development at this intersection we had the problem of no
City sewer and water service lines near our property. It was made clear that the City was
not going to construct the utility extensions and we, the developer, would need to
construct them at our cost, however we would be given rights of cost recovery when
adjacent property owners connected to the lines. Again understanding that this was the
way future developments would be, we accepted this and continued.
We had the water and sewer extensions designed to City standards, approved by the City
Engineering and installed with City inspection. The extensions were from just east of the
Mayflower storage building along Twin Valley Drive to our property east of Hwy
151/61. We were advised that our cost of the lines to the last manhole just south of the
Hardee's would be recouped as connection fees would be collected by the City. We did
not get assistance for the lines from this point to our property except for the material cost
difference of 12" water lines versus our needed 8" lines as City expectation was that the
water lines would someday be extended to service other properties. Again we accepted
this and moved forwazd.
Within a short time of our completing the utility extensions, the adjacent properties were
purchased by A.J. Spiegel (northwest corner) and Bob Kiel (southwest corner). We were
aware that we could now expect to recoup our investment, however to our surprise when
the City set connection fees for Kiel and Spiegel, they were granted City assistance to
neaz 45% of the connection fees. The total of these moneys were passed onto us as
agreed, however we received no support for holding cost or extending the line to our
property from this point.
Both Spiegel and Kiel properties were granted C-3 zoning, not PUDs and the streets
within were allowed dedication to the City. These streets aze directly across the Hwy 151
/61 from ours. Over the past 20 yeazs we have maintained our streets through cost shazing
with the property owners within Dubuque Southgate Development while the streets in the
competing commercial developments of Spiegel and Kiel are maintained by the City.
It is cleaz our street aze none standazd in width and right of way (30 ft. width with 40 ft.
right of ways) as they were designed with the understanding such commercial
developments would be required to be private. The construction of our streets were
however constructed to City specification with 7.5 inches of asphalt paving and 6 inches
of base stone plus concrete curbing to City specification with inspection. Had we the
knowledge at the time of conception that the City would change their application of PUD
zoning we could have constructed them differently. Such developments as ours aze now
considered more in liking to a residential development with stand alone lots served by
common streets, not liking to a Wal-Mart / Lowes development.
Finally consider once again that the combined appraised values of the businesses served
by Gateway Drive and Stone Hill drive is over $2.5 million dollars for which we pay
$101,176 annually to the City in property taxes. This is not including the new Apex
Concrete plant under construction, which when complete will further increase the tax
contribution from our Development. We, Dubuque Southgate Development, opened the
door to this azeas development when no one else was taking this challenge. As a result all
the businesses located in this area contribute greatly to the tax base of the City.
We aze willing to work with the City to provide additional easements if required, to allow
for the street maintenance. We are also willing to work with the City for the completion
of Stone Hill Drive. We are in hopes that in consideration of the above stated facts, the
Council will approve the dedication of the streets to the City in return for the property tax
contributions made by this development.
Thanks and best regards,
Daniel ~..~Glueller
President; Dubuque Southgate Investments. Ltd.