Platinum Holdings - Hotel Agreement 2nd Amendment to DACITY OF DUBUQUE, IOWA
MEMORANDUM
March 28, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor an.d City Council Members
Michael C. Van Milligen, City Manager
Riverfront Hotel and Indoor Water Park
The existing Development Agreement with Platinum Holdings, LLC to consla-act the Mississippi
Riverfront Hotel and Indoor Water Park expired on March 15, 2001. The parties have agreed to
an extension o£the agreement through May 15, 2001.
In addition, a Site Access Agreement has been negotiated so that Platinum Holdings can begin to
do site preparation activities such as surveying.
I respectfully recommend Mayor and City Council approval of these two agreements.
Mitt~nael C Van Milligen --
MCVM/jh
Attachment
cc: Barry- Lindaht, Corporation Counsel
Barry A. Lindahl, Esq.
Corporation Counsel
196 Dubuque Building
700 Locust Street
Dubuque, Iowa 52001-6824
(319) 583-4113
(319) 583-1040 FAX
E-mail: balesqC~mwd.net
March 29, 2001
Mr. Michael Van Milligen, City Manager
City Hall - City Manager's Office
50 W. 13th Street
Dubuque, IA 52001
RE: Development Agreement, City of Dubuque and Platinum Holdings, LLC
Dear Mike:
Enclosed are two documents in connection with the Development Agreement with
Platinum Holdings, LLC.
The first document is an Amendment to the Development Agreement that establishes a
new closing date of May 15, 2001, at the request of Platinum Holdings, LLC. The
original closing date was established at. March 15, 2001.
A Resolution approving the Amendment is also included.
The second document is a Site Access Agreement as requested by Platinum Holdings,
LLC to allow Platinum access to the site prior to closing for the purpose of surveying and
geotechnical testing.
BAL/jm
Enclosures
Cc: Jim Rix
C~orporation Counsel
C)
Service People Integrity Responsibility Innovation Teamwork
118
RESOLUTION NO. -01
APPROVING SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT
BETWEEN THE CiTY OF DUBUQUE AND PLATINUM HOLDINGS, LLC
WHEREAS, the City of Dubuque (City) and Platinum Holdings, LLC
(Developer) have entered into a Development Agreement pursuant to which City will
lease to Developer certain real property for Developer's construction and operation of a
hotel and water park;
AND WHEREAS, the Closing Date established in the Amended Development
Agreement is March 15, 2001;
AND WHEREAS, City and Developer now desire to further amend the
Development Agreement to establish a new closing date of May 15, 2001.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA AS FOLLOWS:
1. The Second Amendment to Development Agreement attached hereto is hereby
approved.
2. The Mayor is authorized and directed to sign the Second Amendment on behalf
of the City of Dubuque.
Dated this 2nc~aY of ^pti ! 2001.
~eanne F. Schneider, 'ty Cl'
T&rance M. Duggan/
SECOND AMENDMENT
TO
DEVELOPMENT AGREEMENT
TI-LIS SECOND AMENDMENT TO DEVELOPMENT AGREEMENT ("Amendment No. 2") is executed as
of the __ day of March, 2001, by end between the CITY OF DUBUQUE, IOWA, a municipality (the "City")
established pursuant to the Code of Iowa of the State of Iowa and acting under authorization of Chapter 403 of the F_mdemf
Iowa, as mended (the "Urban Renewal AcC") end PLATINUM ]E[OLDINGS, LLC, en Iowa limited liability compeny,
with its principal place ofbosiness in Dubuque, Iowa (the '~Developer").
WHEREAS, the above-identified parties have executed a ccrtain Development Agreement dated June 19, 2000
(the '~Developmeut Agreement"), pertaining to, inter alia. the purchase, sale, development and use of certain real property
located in the City of Dubaque, County of Dubuque, State of Iowa (the "Property"); and
WHEREAS, the Development Agreement has been amended pursuant to that certain Amendment to
Development Agreement between the abova-identified parties dated Jenuary 15, 2000 (the "Amendment No. 1'); end
WHEREAS, due to unforeseen c'trcumstanecs and delays, the parties were unable to satisfy all conditions end
requirements related to the Development Agreement as amended; and
WHEREAS, the parties desire to further amend the Development Agreement to satisfy various conditions.
NOW, THEREFORE, in censidermien of the Development Agreement, the foregoing recitals, the mutual
covenants, terms and conditions hereinafter set forth end other valuable consideration, the receipt end sufficiency of
which are hereby acknowledged, the City and Developer hereby agree to modify, amend and supplement the Development
Agreement, as amended, as set forth below.
1. Capitalized terms used but not defined here'm stroll have the meanings set forth in the Development
ngreament.
2. Section 2.7 ortho Development Agreement, as amended by Amendment No. 1, is hereby deleted in its entirety
and replaced with the following:
'*2.7 Cln~ing The closing shall take place on or before May 15, 2001 (thc "Closing Date"),
or such other date as the parties may agree in writing. Exclusive possession of Property shall be delivered
en the Closing Date, in compliance with the terms of this Agreement, including City's representations
end warranties regarding the same. Come,ruination of the Closing shall be deemed en agreement of the
parties to Agreement that the conditions of closing shall have been satisfied or waived. If the conditions
set forth in Section 2.6 are not satisfied at Closing Date, this Agreement shall terminate unless a new
Closing Date is established by amendment to this Agreement. The term'matien ofthis Agreement shall be
the sole remedy in the event a condition set forth in Section 2.6 is not satisfied. Prior to the Closing Date,
the City shall cause its environmental consultant to prepare a supplemental Phase II final report
sannmariz~g the environmental condition of the Property. Tho raport shall include a legible copy of all
laboratory results, maps, end bering logs, together with a narrative describing the investigation. The
report shall also discuss the ice conditions found under the surface."
3. This Amendment No. 2 shall not alter or amend eny obligation of the City to remedy eny underground
ice problems that may exist under the Property so that Developer can immediately commenco constructing the
Minimum Improvements as of the Closing Date.
4. The parties hereby ratify and renffirm all terms and conditions of the Development Agreement, as amended by
Amendment No. 1, which are not expressly modified, amended or supplemented by this Amendment No. 2, and
acknowledge and agree that the Development Agreement, as modified, amended and supplemented by Amendment No. 1
and Amendment No. 2 shall be and hereby is reinstated and shall continue in full force and effect for the duration and the
extent therein pro~qded. If there are conflicts between the terms of the Development Agreement, as amended by
Amendment No. 1, and the terms ofthis Amendment No. 2, the terms ofthis Amendment No. 2 shall control.
IN WIT~',[ESS WHEREOF, the parties hereto have caused this Second Amendment to Development Agreement
to be executed by thek respective duly authorized officers or representatives as of the date and year first above written.
~nue F. Schneider, City Clerk
DEVELOPER:
PLATINLIM HOLDINGS, LLC
James P. Rix, Chief Exeeutive Officer
Donald Ive~son, Member