HomeMy WebLinkAboutA020 - October 28, 2025, Regular Meeting of the Ames City CouncilITEM #:23
DATE:10-28-25
DEPT:FIRE
SUBJECT:LEASE AGREEMENT WITH STATE OF IOWA
FOR FIRE STATION NO. 2 RELOCATION
COUNCIL ACTION FORM
BACKGROUND:
Ames Fire Station #2 is located at 132 Welch Avenue, at the intersection of Chamberlain
Street and Welch Avenue. The station, which was built in 1966, is a single story, 5,500 square
foot, three apparatus bay station.
The existing station presents significant operational challenges due to its age, size, and
location in a busy pedestrian-centric area. Additionally, average response times within the
Station 2 response district can be improved by relocating the station slightly west.
In discussions with Iowa State University leadership, a location for a station has been
identified on ISU-owned property on the west side of State Avenue. This 29-acre area has
been historically used for agricultural purposes and includes a shared-use path that extends
further west to the Ames Middle School property. ISU President Wendy Wintersteen has
expressed a willingness to support a long-term lease for the station on that site.
Staff has prepared a lease agreement that ISU is willing to present to the Board of Regents for
approval. The draft lease is for a term of 52 years, which would accommodate a two-year
construction period and 50-year operational life. With mutual consent, the lease may be
extended beyond this term.
The lease is offered with no financial consideration owed to ISU. The City's obligations include
to construct the new fire station, install any necessary traffic control on State Avenue to
access the station, and to maintain the leased site.
The referendum election at which voters will be asked to authorize the bond issuance is set for
November 4, 2025. If the bond referendum is approved, the lease agreement will be
presented to the Board of Regents for consideration at a regularly scheduled meeting.
ALTERNATIVES:
1. Approve the attached lease agreement, contingent upon the approval of the November 4
bond referendum and the approval of the Board of Regents.
2. Direct staff to modify the lease agreement.
3. Do not approve the lease agreement.
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CITY MANAGER'S RECOMMENDED ACTION:
In keeping with the long-standing partnership between the City of Ames and Iowa State
University to provide fire protection to both the community and the university campus,
ISU has identified a parcel of land that would be suitable for construction of a
replacement for the existing Fire Station No. 2.
The proposed location offers improvements to fire apparatus ingress and egress, better
positioning for existing and anticipated calls for service as the community grows, and
distance from neighbors who may be concerned about light and noise.
The University is offering this lease for no financial consideration, which greatly
reduces the cost of the station relocation project. In lieu of rent, the City will construct
the fire station and maintain the property, which includes natural areas and a shared
use path. The lease term extends for 52 years, and can be extended for a longer
duration if it is mutually agreeable to do so. It is therefore the recommendation of the City
Manager that the City Council adopt Alternative No. 1, as described above.
ATTACHMENT(S):
Fire Station 2 Lease FINAL WITH EXHIBITS.docx
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DO NOT WRITE IN THE SPACE ABOVE THIS LINE. RESERVED FOR RECORDER
Prepared by: Mark O. Lambert, City of Ames, Legal Department, 515 Clark Avenue, Ames, IA 50010 – 515-239-5146
Return document to: Ames City Clerk, 515 Clark Avenue, Ames, IA 50010
LEASE AGREEMENT
BOARD OF REGENTS, STATE OF IOWA
ACTING FOR IOWA STATE UNIVERSITY
OF SCIENCE AND TECHNOLOGY
TO THE CITY OF AMES, IOWA
(Fire Station No. 2)
THIS LEASE AGREEMENT made this _____ day of __________________, 20___, between
the City of Ames, Iowa, hereinafter called “City”, and the Iowa Board of Regents acting for and
on behalf of Iowa State University of Science and Technology, hereinafter called “University”,
WITNESSETH:
WHEREAS, the parties hereto have shared in a joint and cooperative effort to assure proper fire
service and protection to Iowa State University and the City of Ames, Iowa, and
WHEREAS, the existing Fire Station No. 2, located at 134 Welch Avenue in Ames, was built over
fifty years ago and experiences operational challenges owing to its location in a pedestrian-centric
commercial district, and
WHEREAS, in order to address operational challenges with the existing Fire Station No. 2 and
provide an improved response time to calls for service both on University properties and to
locations within the City of Ames, it is desired to relocate Fire Station No. 2 to University-owned
property located on State Avenue, Ames,
NOW THEREFORE, in consideration of the premises and the mutual covenant of the parties
hereto, it is agreed:
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1. The University hereby agrees to lease to the City for use as a public facility known as Fire
Station No. 2 the following described site situated in Story County, Iowa (“Leased Site”):
LEGAL DESCRIPTION ATTACHED AS EXHIBIT A
2. The term of this Lease Agreement shall be fifty-two (52) years, commencing on the _____
day of __________________, 20____, and ending at midnight on the ________ day of
__________________, 20____, unless earlier terminated by mutual agreement of the parties or as
set forth in Paragraph 16 of this Lease Agreement. In recognition that the City might want to make
additional improvements on the Leased Site in the future that will require additional time to
depreciate, it is agreed that the City may request, and the University may grant with the approval
of the Iowa Board of Regents, extensions to this Lease Agreement term at any time.
3. There shall be no money payments due or owing the University under this Lease
Agreement. The full, complete, and satisfactory consideration for this Lease Agreement shall be
the following obligations, which shall be performed by the City at no cost to the University:
a. Construct on the Leased Site the Fire Station No. 2 building, along with the
accessory components such as, but not limited to, driveways, parking lots,
sidewalks, bike/shared use paths, etc.;
b. As determined necessary by the City for access to the Leased Site, install the
entryway improvements which may include, but are not limited to, traffic control
devices and turning lanes along State Avenue;
c. Maintain the Leased Site;
d. Design, construct, install, inspect, and maintain storm water management systems
in accordance with applicable City codes and storm water management best
practices and hold any required permits; and
e. Obtain easements or other permissions from the University, with the approval of
the Iowa Board of Regents, for use of any property of the University other than the
Leased Site in support of the construction and operation of Fire Station No. 2 and
its accessory components and entryway improvements.
4. The City shall use the Leased Site for Fire Station operations. The City will own and
manage Fire Station No. 2. The City may also plant hay, grass, and similar vegetation for bales on
the Leased Site, but the City shall not plant row crops on the Leased Site. If the City sells the bales
to third parties or if the City permits a third party to engage in haymaking activities on the Lease
Site, the City shall pay the University 50% of the revenue received by the City from such sales or
activities. The City shall annually report such revenue to the University and pay the University’s
share of the revenue at such time. If the University purchases any bales from the City, the City
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shall discount the purchase price by 50%. Sales to the University are excluded from the revenue
sharing obligation set forth in this section.
5. The City is authorized to make all of the improvements on the Leased Site as generally
shown on the conceptual plan attached as Exhibit B. The City shall submit its site, utility and
circulation infrastructure (sidewalk and bike/shared used path) plans for the improvements to the
University for approval prior to commencing construction, which shall not be unreasonably
withheld. All construction shall be in conformance with such approved plans.
6. Following the completion of the initial construction project as described in Paragraph 5,
the City may also construct on the Leased Site additional permanent buildings and other
improvements that are consistent with the purposes set forth in Section 4 after obtaining the
University’s approval; provided, however, that no prior approval shall be required for: (i) the
construction of any improvement depicted in Exhibit B; (ii) any modification of an existing
improvement provided the footprint of the improvement remains as depicted in Exhibit A; or (iii)
replacing landscaping installed as part of the initial construction project. If new site, landscaping,
utility or circulation infrastructure (sidewalk and bike/shared use path) plans are developed for the
new improvements, the City shall submit the plans to the University for approval, which shall not
be unreasonably withheld. All construction shall be in conformance with such approved plans.
7. The City may grade the Leased Site and install on the Leased Site utilities necessary for
the development of the Fire Station No. 2 building, parking lot, utilities, storm water facilities, or
other related purposes. The City shall pay for all utility services furnished to the Leased Site that
serves the City’s programs and buildings.
8. The University makes no representations or warranties regarding the Leased Site. The City
is responsible for determining whether the Leased Site is suitable for the construction and
operation of Fire Station No. 2 and the programs and activities on the Leased Site.
9. The City, after taking possession of the Leased Site and until the termination of this Lease
Agreement, shall care for and maintain the Leased Site in a reasonably safe and serviceable
condition consistent with other City facilities. The City shall also remove snow, mow grass,
remove weeds and debris, prune and care for trees, bushes, and other vegetation, remove dead, no
longer thriving, or fallen trees, bushes, and other vegetation. The City shall confer with the
University prior to removing any trees from the Leased Site. The City shall, when requested by
the University and not more than annually, meet with University representatives to review the land
on the Leased Site. The City will not knowingly permit or allow the Leased Site to be damaged
or depreciated in value by any dumping of refuse, discharge of hazardous waste or any act of the
City, its agents or employees. The City shall do what is reasonably necessary to control soil erosion
resulting from the City’s use of the Leased Site, including maintenance and preservation of existing
watercourses and waterways. The City shall confer with the University prior to taking any soil
erosion or other land management measures on the Leased Site, unless in the City’s judgement
such measures are immediately necessary to preserve or protect life or property or to comply with
environmental laws, in which instance the City may take immediate soil erosion or other land
management measures and shall notify the University as soon as practicable thereafter. The City
shall comply with all applicable laws, regulations and ordinances, including but not limited to
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those pertaining to accessibility by persons with disabilities. The City shall pay or cause to be paid
all costs for work done by it or caused to be done by it on the Leased Site, and the City will keep
the Leased Site free and clear of all mechanics’ liens or claims relating to the City’s public
improvements and other liens on account of work done for the City. The City shall be primarily
responsible for providing emergency services (e.g., fire protection, law enforcement) on the Leased
Site. However, nothing herein shall contravene any existing or future 28E Agreements between
the parties unless specifically stated. The City shall, when requested by the University and at no
cost to the University, provide crime statistics related to the Leased site.
10. The City does hereby covenant and agree to indemnify and hold harmless the University,
its officers and employees, against any loss or liability whatsoever, including reasonable attorney’s
fees, pertaining to any and all claims by any and all persons, resulting from or arising out of the
City’s construction, location, operation and maintenance of the Leased Site.
11. The University reserves the right to access the Leased Site to install and maintain on the
Leased Site utility conduit, pipelines and similar items to supply utilities to property owned or
controlled by the University. The University shall perform the installation and maintenance in a
manner reasonably calculated to minimize interference with the programs and activities on t he
Leased Site and shall, at its expense, restore to its prior condition any portion of the Leased Site,
including any City improvement on the Leased Site, disrupted or damaged by the University’s
work. The University reserves the right to enter the Leased Site and the improvements during
regular business hours for purposes of conducting periodic inspections of the Leased Site, provided
such inspections shall be subject to the terms of, and shall not interfere with, the rights of the City
under this Lease Agreement.
12. The University may continue to use the Leased Site for agricultural purposes at no-charge
until the City commences construction. During such time, the University shall own any crops
grown on the Leased Site and revenues from the sale of the crops. The City shall notify the
University when the City desires to begin construction on the Leased Site. The City shall provide
such notice by no later than December 1 of the year preceding the calendar year during which
construction is to commence.
13. If the University determines that it needs a portion of the Leased Site for its own operations,
the parties shall enter into an amendment to this Lease Agreement to remove such portion from
the legal description of the Leased Site; provided, however, that no such removed portion may (i)
include the site of the initial construction project as described in Paragraph 5 or the site of any
subsequent improvement approved and constructed as set forth in Paragraph 6 or (ii) interfere with
the City’s operation and use of the improvements described in subparagraph (i).
14. The Parties anticipate that there will be no real estate taxes or assessments assessed against
the Leased Site or the City’s improvements. Should taxes or assessments be assessed for the period
during which the City has leased the Leased Site, the City shall be responsible for the payment of
such taxes or assessments.
15. At the end of the term of the Lease Agreement or upon early termination of this Lease
Agreement, the City will remove all facilities, equipment, improvements, and personal property
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(“City’s Property”) from the Leased Site and return the Leased Site to a safe, open space, unless
otherwise agreed to in writing by the Parties. The Parties agree to meet and determine a reasonable
schedule for the removal of City’s Property and return of the Leased Site to open space. However,
if the City makes a request in writing to extend the term of the Lease Agreement for purposes
consistent with Paragraph 2, and such request is made in the period beginning three years prior
and ending no later than one year prior to the end of the term of the Lease Agreement (or any
mutually agreed modification of the term), and the University denies the request, then the
obligation to remove City’s Property will be based on mutually satisfactory terms agreed to by the
Parties in writing.
Both Parties acknowledge that no environmental study has been performed on the Leased Site
prior to entering into this Lease Agreement to determine if any hazardous materials exist on the
Leased Site prior to the City taking possession of it. However, upon termination of the lease the
City agrees to remove any hazardous materials that are deposited as a result of City activities on
the Leased Site during the term of this Lease Agreement.
16. This Lease Agreement is granted and all rights hereunder shall endure except that if one o r
more of the following events occurs the University may terminate the Lease Agreement following
the procedures indicated in this Paragraph:
a. The City fails to begin construction of the improvements described in Paragraph 5
within three years from the commencement of this Lease Agreement.
b. The City uses the Leased Site for purposes other than stated in Paragraph 4.
c. The City breaches a material term of this Lease Agreement and such breach is
serious and goes to the essence of the transaction. A breach is serious and goes to
the essence of the transaction only in the following cases:
i. The City has breached a term of this Lease Agreement and such breach has
caused or is reasonably expected to cause damages in excess of $500,000,
such amount to be adjusted annually each September 1 for inflation using
the Department of Labor’s Consumer Price Index-Urban [CPI-U, All Items,
All City Average, 1982-84=100] issued in the preceding month;
ii. The City has repeatedly breached a material term of this Lease Agreement
within any two-year period, or the City has engaged in a pattern of material
breaches of the Lease Agreement; provided, however, this clause shall apply
only where the City’s breaches indicate deliberate indifference to the terms
of this Lease Agreement.
For termination pursuant to Subparagraph 16(a), the University shall give at least 60 days advance
written notice, and termination shall be automatic at the end of the 60-day notice period. For
termination pursuant to Subparagraphs 16(b) and 16(c), the University shall notify the City in
writing of its intent to terminate and the nature of event or breach the University believes has
occurred and shall provide the City with a reasonable period commensurate with the nature of the
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event or breach to cure such event or breach. If the City fails to cure such event or breach by the
end of the cure period, the University shall give at least 30 days advance written notice, and
termination shall be automatic at the end of the 30-day notice period. Prior to the expiration of the
30-day notice period, the City may appeal to the Iowa Board of Regents in accordance with the
applicable appeal procedure (if any) in the Board Policy Manual to contest whether the event or
breach occurred, whether the University provided a reasonable cure period, or whether the City
cured the event or breach. If the City files an appeal, the Lease Agreement shall not be terminated
while the appeal is pending. The foregoing shall in no way affect or impair the right of either party
to pursue any other legal or equitable remedy to which either party may be entitled. In the event
of termination of the lease under this Paragraph 16, the City shall retain ownership of the Fire
Station No. 2 building and accessory facilities and equipment but shall be obligated to remove
them from the Leased Site as set forth in Paragraph 15.
17. The City may terminate this Lease Agreement upon written notice to the University if
existing environmental hazards are discovered to be present at the Leased Site.
18. This Lease Agreement may not be assigned or the Leased Site subleased by the City
without the advance, written consent of the University. The City may lease the portion of the
Leased Site not used for Fire Station No. 2 for haymaking activities without obtaining the
University’s prior consent. This Lease Agreement may not be assigned by the University without
the advance, written consent of the City.
19. All notices under this Lease Agreement shall be in writing and shall be deemed to have
been given: (i) upon hand delivery or (ii) the next business day after sending it by a nationally
recognized overnight carrier with written confirmation of receipt. The Parties shall deliver notices
to the following:
If to University:
Senior Vice President for Operations and Finance
Iowa State University
1350 Beardshear Hall
515 Morrill Road
Ames, Iowa 50011
And
General Counsel
Iowa State University
3550 Beardshear Hall
515 Morrill Road
Ames, Iowa 50011
If to City:
City Manager
City of Ames
515 Clark Avenue
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Ames, Iowa 50010
And
City Attorney
City of Ames
515 Clark Avenue
Ames, Iowa 50010
20. This Lease Agreement constitutes the entire agreement between the parties with respect to
the subject matter of this Lease Agreement and supersedes all prior agreements, whether written,
oral, or implied. This Lease Agreement shall not be modified without the written mutual consent
of the parties. The failure of either party to require performance of any term or condition of this
Lease Agreement by the other party shall not constitute a waiver to subsequently enforce such term
or condition. The invalidity or illegality of one or more provisions of this Lease Agreement shall
not affect the enforceability of the remaining provisions. The parties’ rights and obligations in this
Lease Agreement that, by their nature, would continue beyond the termination of this Lease
Agreement shall survive such termination.
Signatures follow on next page
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CITY OF AMES, IOWA
By:_________________________
John Haila, Mayor
Attest by: _________________________ Renee Hall, City Clerk
State of Iowa )
County of Story )
This record was acknowledged before me on ______________________, 20___ by John Haila as
Mayor of the City of Ames, Iowa.
________________________________________
Notary Public in and for Said County
My Commission Expires: ___________________
IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY
By:_________________________
,
State of Iowa )
County of Story )
This record was acknowledged before me on _______________, 20___ by _____________________
as ___________________________________ of Iowa State University of Science and Technology.
________________________________________
Notary Public in and for Said County
My Commission Expires: ___________________
BOARD OF REGENTS, STATE OF IOWA
By:_________________________
Mark Braun, Executive Director
State of Iowa )
County of Story )
This record was acknowledged before me on ______________, 20___ by Mark Braun as Executive
Director of the Board of Regents, State of Iowa.
________________________________________
Notary Public in and for Said County
My Commission Expires: ___________________
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EXHIBIT A – Legal Description
Lot Two (2), Ames Middle School 2003, Plat 2, City of Ames, Story County, Iowa
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EXHIBIT B – Conceptual Plan
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