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Loans - Main St, Gard & WillisMEMORANDUM February 28, 2002 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Amendment to Downtown Rehabilitation Loan Agreements for Guy Gard (356 Main Street) and Ellen Willis (372 Main Street) Finance Director Ken TeKippe is recommending approval of an amendment to the Downtown Rehabilitation Loan Agreements for Guy Gard and Ellen Willis to allow additional loans to them for the costs of temporary shoring of their buildings until soil stabilization under the buildings can be accomplished. 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 Ken TeKippe, Finance Director CITY OF DUBUQUE, IOWA MEMORANDUM TO: FROM: SUBJECT: DATE: Michael C. Van Milligen, City Manager Ken TeKippe, Finance Director Amendment to Downtown Rehabilitation Loan Agreements for Guy Gard (356 Main Street) and Ellen Willis (372 Main Street). February 27, 2002 Introduction The purpose of this memorandum is to request City Council approval of an amendment to the Downtown Rehabilitation Loan Agreements for Guy Gard (356 Main Street) and Ellen Willis (372 Main Street) to allow additional loans to those property owners for the costs of temporary shoring of their buildings until soil stabilization under the buildings can be accomplished. Background The City Council of the City of Dubuque, Iowa has created a Downtown Rehabilitation Loan Program for the purpose of stimulating reinvestment in the Downtown Dubuque Urban Renewal District. The City Council amended this loan program to assist business and property owners effected by construction of the Third Street Parking Ramp. Applications by Guy Gard and Ellen Willis met the requirements set forth by the City Council. Discussion Attached is information from the attorneys for the Main Street property owners which provides information on temporary remediation actions that need to take place on Ellen Willis' and Guy Gard's buildings. The cost to install the temporary shoring as well as related monthly shoring rental expense could reach $35,000 for Ellen Willis and $23,500 for Guy Gard. I have reviewed this issue with Corporation Counsel Barry Lindahl and Attorney Les Reddick. It is their recommendation that we amend the existing loan agreements so that the owners can initiate the shoring as soon as practicable to reduce the potential for further damage to the buildings. All sums owing for temporary shoring will be due and payable within 30 days of the settlement, dismissal or judgment in the property owners' lawsuit. Recommendation I recommend that the City Council adopt the attached resolution approving an amendment to the Downtown Loan Agreements for Guy Gard and Ellen Willis and authorizing City staff to prepare and execute the necessary amendments to the loan documents. The resolution directs the City Manager to prepare and execute the final documents according to the terms and conditions of the amended Loan Agreements. Action The requested action is for the City Council to adopt the attached resolution. Attachments cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager RESOLUTION NO. 109-02 APPROVING AN AMENDMENT TO THE DOWNTOWN REHABILITATION LOAN AGREEMENTS FOR GUY GARD (356 Main Street) AND ELLEN WILLIS (372 Main Street). Whereas, the City Council of the City of Dubuque, Iowa, has created a Downtown Rehabilitation Loan Program for the purpose of stimulating reinvestment in the Downtown Dubuque Urban Renewal District; and Whereas, the City Council amended this loan program on March 19, 2001, to assist business and property owners effected by construction of the Third Street Parking Ramp with operating expenses for their businesses; and Whereas, some of the property owners have now requested additional funds for temporary shoring of the buildings on Main Street to protect the buildings until soil stabilization can be undertaken; and Whereas, the City Council has determined that an amendment to the Loan Agreements for such purpose is appropriate. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Downtown Rehabilitation Loan Agreements for Guy Gard (356 Main Street) and Ellen Willis (372 Main Street) may be amended to include the costs of shoring of their buildings. Section 2. That the City Manager is hereby authorized to execute, on behalf of the City of Dubuque, Iowa, all necessary loan documents and is further authorized to disburse additional loan funds in accordance with the terms and conditions of the executed amended loan documents. Passed, approved and adopted this 4th day of March, 2002 Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk F~B-25-2002 MON 04:33 PM KRNE NO~Y & REDDICK , 563 582 5312 P, 02 LAW CANAL, DAY,S & KZNG 10 $Ol.r~ LA SALLIt ~., ~Lrfl~ ~00 C~UCA:GO, ILLINOIS Febrtmry 20, 2002 1.,cs ¥. l:teddick Kane, N~by & I~dick, PC 2100 Asbuty P,.oad, Suite DubuqUe., Iowa 52001 Re: Altt,_,,w et nil v. The CRv o! Dulmaue. etaL I h~v~ r~wi~d the proposed languag~ to ~ ~ m ~ ~d ~'s lo~ a~. I ~oved ~ ~ c~t ~ ~ ~. I ~ld ~ t~ you n~ '. ~1 ~ t~o~blc ~ ~j~g ~e ~e ~ ~o~ ~ ~c ~, now ~ ~. As For Guy, I ~ve no~ ygg di~ ~ ~w lo~ ~ee~t 1~ ~ ~. I ~ve also not ~t rg~iv~ a ~ ~ f~ ~s ~, but i ~pa~ ~ ~on. I ~R let you ~lepl~lm L). l~'ams JfiN'17-2002 THU 11:05 P~ K~E NORBY & P, EDDICK FAX NO. 563 582 5312 P, 02 J~m~ry IS, 20~2 Les V. Reddick, Esq. Kant, Norb¥ & R~ddick, PC 2100 Asbury Road, Suim B Duhuq~, Iowa $2001 For $~-'alemmt Purposes Only ~e~ Althoff~ et.~L y, The Cilv of Dubun_u~ ~ *,i De~r Mr. Rcddick: Tom Rcw~rts w~nt out m Dubuqm lam Wednesday with butane. 1 ~d~d ~ lh~ p~ ~r Cl~k WoWs b~ldi~ will Th~ shoring contnm~or tnifially C.~m~d that ~ Cost 0f shoring Ell~'s ~ild~g ~uld a~ut $17,000, ~ ~li~ea ~ ts a ~ ~ R~ ~v~d m~ ~a ~ sho~g ~ ~'s ~d b~ ~ ~ $$-6,~ r~ge. I do not have R~ ~vi~ ~ ~ ~ ~ ~n~or ~m do A~ ~A iii ~ but mu~ b~ a~ otprompt ~ I ~lieve ~ t~ ~ ~o~d ~ ~ r~ ~rk m a publi0 ~ m~r ~ m ~c~n~ ~e inj~ ~ d~. I ~ ~t ~e in corn ih~ ~e ~t t~ ~ paid ~r ~ ~ ~d~ ~ a~i~on oflI~. 1 ~U~e ~ ~ p~vc ~c ~m Please Iet me know the City's position as soon as possibk, JfiN-IT-2002 THU 1t:09 aM ~NE NORBY & REDDIOK FAX NO. 583 582 5312 Thomas L, Rewert~ P, 03/05 ,lanuary 1 I, 2002 Mr. Stephen. Davis Canal Davis & King lO South LaSalle, Suite 3400 CMcago, IL 60602 Shoring Reqeirezl for Ellen's Flower Shop, Dubuque, [ow,. TLR ?roject No, O111 $ DearSteve: We have received a quotation ~r lbo co~t to (o~lall sbor{ng till wc dcC~ ne~Ss~ to s~bfl~e lh~ ~ncrele ~ure of Bllcn's ~r S~p. A ~py of t~ p~po~ is ~ac~d, Th~ inc~8~ shorin~ to insure that ~e ~o~ ~or co~mte shb and tM ~p~ lcfii concre~ mol slab at t~ r~ ~[~c ~d~ go ~t collaps~ ~ ~ diff~en~al foX,don ~t~ment ~ues Io oc~. ~ also ~clt~es ~o~n~ to inset ~t the r~ (~t ~c~g) fo~tion wall t~t ~ the ~st floor sl~b a~ve does ~t I,VMIe we realize tile cost k extensive, this work is necessary to insure continued safety of :he building and to allow conzlnued use oftl~ ~trucvaz~ This proposal is unique to Ellcn's Flo~r Shop. A similar proposal is being prepared for shoring that is required for Guy Gard's adjacent struzUirc. That proposal will bc issued ncXl week after thc contractor ,r~ke~ some additional measurements at ti~ site. ,Pl~tse review ~d forward tht oncloscd proposal to your client for review ~ approwl, The contractor can start this work next w~ek, Enclosures Col~ to - Mr. Pet~ Cc~gtov~ Imc~mationaJ F. quipnmnt, Inc. 400 Nor[Il Michigan A~enueo Sl~ite a09, Cinlc. ago, iL 6061 Phone 1~12,527.0lI10 Fax ~12,527.g482 · ~toma~L Rewe~L~ATl'.net DOWNTOWN REHABILITATION LOAN PROGRAM AMENDMENT TO LOAN AGREEMENT The City of Dubuque and Ellen M. Willis hereby amend the Loan Agreement entered as of the 26th day of April, 2001, as follows: The following language is added to paragraph number 2 Loan Terms: Because certain temporary shoring of Owner's building on Main Street is necessary to operate Owner's business, including related monthly shoring rental expense, pending resolution of the lawsuit referenced below, the City agrees to loan to Owner an additional amount of up to $35,000, at zero percent interest, payable $17,000 upon the signing of this Agreement, and an amount not to exceed $2,000 per month for the actual cost of shoring rental, on the first of each month commencing March 1, 2002, for a maximum of 9 months ending November 1, 2002. The monthly loans shall terminate if the temporary shoring rental costs cease. All sums owing under this Loan Agreement as amended shall be due and payable within 30 days of the settlement, dismissal or judgment in the current lawsuit pending in Dubuque County captioned Steven Althoff, et al. v. City of Dubuque, et al., Law No. 52643, but in no event later than January 2, 2003. A promissory note will be executed by Owner in a form consistent with the prior Exhibit A. DOWNTOWN REHABILITATION LOAN PROGRAM AMENDMENT TO LOAN AGREEMENT The City of Dubuque and Guy Gard hereby amend the Loan Agreement entered as of the 26th day of April, 2001, as follows: The following language is added to paragraph number 2 Loan Terms: Because certain temporary shoring of Owner's building on Main Street is necessary to operate Owner's business, including related monthly shoring rental expense, pending resolution of the lawsuit referenced below, the City agrees to loan to Owner an additional amount of up to $23,500, at zero percent interest, payable $10,000 upon the signing of this Agreement, and an amount not to exceed $1,500 per month for the actual cost of shoring rental, on the first of each month commencing March 1, 2002, for a maximum of 9 months ending November 1, 2002. The monthly loans shall terminate if the temporary shoring rental costs cease. All sums owing under this Loan Agreement as amended shall be due and payable within 30 days of the settlement, dismissal or judgment in the current lawsuit pending in Dubuque County captioned Steven Althoff, et al. v. City of Dubuque, et al., Law No. 52643, but in no event later than January 2, 2003. A promissory note will be executed by Owner in a form consistent with the prior Exhibit A.