SMG_Five Flags Management Agreement Amendment 1(b)THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Extend Five Flags Management Agreement
DATE: November 10, 2008
Leisure Services Manager Gil Spence recommends City Council approval to extend the
Five Flags Management Agreement with SMG for the period July 1, 2009 to June 30,
2014.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micha f C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gil Spence, Leisure Services Manager
THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: Michael C. Van Milligen, City Manager
FROM: Gil D. Spence, Leisure Services Manage
SUBJECT: Extend Five Flags Management Agreement
DATE: November 10, 2008
INTRODUCTION
The purpose of this memorandum is to recommend that the City Council extend the
Management Agreement with SMG for management of the Five Flags Center.
DISCUSSION
On May 17, 2004, the City Council voted to enter into a contract for private manage-
ment of the Five Flags Center with SMG. Staff negotiated an agreement that was
approved on June 21, 2004. The agreement is for a five year term, July 1, 2004
through June 30, 2009, and provides that the City Council may, in its sole discretion,
extend the term for an additional five year term, commencing July 1, 2009 and ending
June 30, 2014, by giving written notice not less than one hundred eighty (180) days
prior to June 30, 2009.
The four years SMG has managed the Center have been successful in many ways.
Property tax increases have slowed and more traveling shows have appeared in the
building. These were the two main goals we set when the decision was made to use a
private management firm. A property tax benchmark is set each year, and each year
SMG has beaten the benchmark. This has been accomplished through good
management decisions and increased revenue.
We face new challenges in the near future if the ice arena is constructed, if the
University of Dubuque builds a performing arts center, the 800 seat theater in the new
Diamond Jo complex, and the theater proposed in the Dubuque Greyhound Park and
Casino renovation. These facilities will compete with the Five Flags Center and will
likely take major tenants away. SMG's leadership will be helpful guiding us through this
period.
(continued)
extend five flags management agreement, page two
RECOMMENDATION
SMG would like a five year extension and I recommend the City Council extend this
relationship with SMG.
ACTION STEP
The action requested is that the City Council adopt the attached resolution extending
the Five Flags Management Agreement with SMG for the period July 1, 2009 to June
30, 2014.
GDS:jIr
attachments
copy Joyce White
Tom Lorenz
Private Management for Public Facilities
Joseph F. Romano
Regional Vice President
November 21, 2008
Mr. Gil Spence
Leisure Services Director
Five Flags Center Contract Administrator
City of Dubuque, IA
2200 Bunker Hill Raad
Dubuque, IA 52001-3010
VIA IFEI)ERAL EXPRESS
Dear Gil:
Please allow this letter to serve as acknowledgement of the Dubuque City Council's November
17, 2008, action to extend SMG's Management Agreement for the Five Flags Center, via
Resolution No. 406 - 08 .
All terms and conditions of the original Management Agreement remaining in effect, the new
Agreement expiration date to be June 30, 2014.
SMG values its business relationship with the City of Dubuque and we look forward to serving
the City throughout this next contract term.
Best regards,
~oseph F. Romano
Sr. Regional Vice President
Received and Acknowledged far the City of Dubuque:
By: ,
Name:
Date:
Cc. with attachment: John Burns, Executive Vice President/CFQ, SMG
Hank Abate, Senior Vice President, SMG
Tom Lorenz, Regional General Manger, SMG
Joyce White, General Manger, Five Flags Center, SMG
Stadiums ®Arenas ®Convention Centers ®Theatres
Iowa State Center ®Sclieman Building, Suite 004 ®Ames, IA 50011-0011 ®Voice: 515.294.3347 ®Fax: 515.294.4594
E-Mail: jromano@iastate.edu
Preparer: Gil D. Spence Address: 2200 Bunker Hill Rd. Phone: (563) 589-4263
RESOLUTION NO. 406-08
A RESOLUTION APPROVING THE FIRST AMENDMENT TO THE MANAGEMENT
AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND SMG.
Whereas, the City of Dubuqeu has indentified the need for private management of
the Five Flags Center; and
Whereas, the City of Dubuque (City) and SMG entered into a Management
Agreement on June 21, 2004; and
Whereas, the current five year term of the Agreement expires on June 30, 2009;
and
Whereas, City and SMG now desire to amend the Management Agreement to
provide for an additional five year term, July 1, 2009 through June 30, 2014.
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the First Amendment to the Management Agreement between the
City of Dubuque, Iowa and SMG be approved.
Passed, approved and adopted this 17th day of November, 2008.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
PK