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.