Dubuque Racing Association Memorandum of Understanding Regarding Endowment Fund Copyrighted
November 2, 2020
City of Dubuque Action Items # 2.
City Council Meeting
ITEM TITLE: Dubuque Racing Association Memorandum of Understanding Regarding
Endowment Fund
SUM MARY: City Manager recommending that the Mayor and City Council approve the
attached Memorandum of Agreement that would redirect DRA
endowment contributions for two years, 2020 and 2021.
SUGGESTED Suggested Disposition: Receive and File;Approve
DISPOSITION:
ATTACHMENTS:
Description Type
City Manager Memo City Manager Memo
Aviles Letter to City Manager Supporting Documentation
Memorandum of Understanding Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: DRA Request
DATE: October 29, 2020
The Dubuque Racing Association has experienced some significant financial difficulties
this year with being closed for about two months as ordered by Governor Reynolds due
to the COVID-19 pandemic and for the same reason having reduced business levels
when open. The distributions to the City and charities in 2020 are based on 2019
perFormance, which was not impacted by the pandemic. However, with the current year
reduced revenue levels and the uncertainty that exists around the future with the
continued, and sometimes increasing, impact of COVID-19, the DRA appropriately
chose to delay any 2020 charitable giving. The DRA would now like to provide some
charitable support to parts of the community impacted by COVID-19 by taking $590,000
that was destined in 2020 to be placed in a permanent endowment, as is done each
year consistent with the lease with the City, and redirect those funds to support
charitable goals related to the pandemic this year.
While this redirection of the 2020 endowment contribution is the DRA request, I am
respectfully recommending that the Mayor and City Council approve the attached
Memorandum of Agreement that would redirect this endowment contribution for two
years, 2020 and 2021. The COVID-19 pandemic is having such a significant negative
impact on members of our community and on not-for-profits in our community, while at
the same time the DRA has less resources. That is why I think the City should
authorize a two-year redirection of the endowment contribution if the DRA decides they
need that second year of funding to meet their goals for charitable giving.
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Mic ael C. Van Milligen
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Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Barry Lindahl, Senior Counsel
Jesus Aviles, President & CEO, Dubuque Racing Association
Gary Dolphin, DRA Board Chair
2
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C A S I N O
October 29, 2420
Mr. Michael C. Van Milligen
City Manager
SO West i3th Street
Dubuque, IA 52Q01
RE: Request for a One-Time Exception ta a Clause in the Amended and Restated Leas�
Agreernent between DRA and City of Dubuque ("Lease Agree3nent")
Dear Mr. Van Milligen:
The Dubuque Racing Associa#ion(hereinafter"DRA") requests the Dubuque City Council to
grant a one-tirr�e exceptian, as set forth in the attached Memoranduxn of Understanding,to the
provisions cantained in the Lease Agreement requiring distributions of Net Cash Remaining to
the irrevacabie permanent endowment.
In tlie event tha�the City Council gar�ts this exceptian,DRA shall contribute $590,000 to the
Communiiy Foundation af Greater Dubuq�xe Disaster Recovery Fund I COVID-19 for
distribudan by the Commwiity Foundation ta local organizations impacted by the COVID-19
pandemic, aIl as determined by the Communaty Foundation in its sole discretion witl�a p�rocess
in accordance with the Mer�orandum of Understanding.
Sincer yours,
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Jes' M. Aviles
P ident&CEO
buque Racing Association,Ltd.
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C A 5 � N O
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF DUBUQUE
AND
DUBUQUE RACING ASSOCIATI�N, LTD.
This Mernorandum af U�d�rs�anding, da�ed for referer�ce purposes the 29�day af
Octobe�, 2020, is entered into by and between the City of Dubuq�e (Cify) and Dubuque
Racing Association, LTD. (Association).
Whereas, City and Assaciation ha�e entered into an Amended and Resfated
Lease Agreemer�t dated the 31$t day o€ March, 2404 (#he Lease Agreement), as
amended; and
Whereas, Section 41 af the Fourth Amendme�t to the Lease Agreement, atkached
hereto, pra�ides for the distribu#ion of Net Cash Remaining as defined therein; and
Whereas, City and Association desire to agree to a modification to Section 41 as
set forth herein.
NOW, THEREFORE, IT 15 AGREED BY AND BETWEEN CfTY AN�
ASSOCfATION AS FOLLOWS:
1. For fiscal year 2020, any a[location or distribution required by Section 41 to be
allocated or distribute� to�he Endowment Fund shall ins#ead be allocated and distributed
to �t�e Community Four�dation of Greater Dubuque Disaster Recovery Fund 1 C�VID-19
Response Fund. For fiscal year 2023, any aTlocation or distrbufion required by Sec�ion
�41 to be allocated or distribu#ed to the Endawment Fund shall instead be allocated and
distributed for charitable purposes at the discretion of Association.
2. The purpose of t�e Community Foundation of Grea#er Dubuque Disaster Reco�ery
Fund/COVfD-19 Response Fur�d is to help address both immediate anci long-�erm unmet
r�eeds tha#will arise during times of disaster.
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3. The Community Foundation of Greater Dubuque Disaster Recovery Fund
COVID-19 Response Fund, for the portion contributed by Association related to the
Memorandum of Understanding, shall be administered by the Community Foundation of
Greater Dubuque assisted by a committee comprised as follows:
Community Foundation of Greater Dubuque
• United Way of Dubuque Area Tri-States
• DRA Representative, Mike Donohue
Dubuque Initiatives Representative, Doug Horstmann
4. The Committee will assist the Community Foundation of Greater Dubuque to:
Identify potential grant recipients
Solicit guidance on potential recipients from community advisors
Recommend final grants
CITY OF DUBUQUE, IOWA
0
Roy D. Buol
Mayor
2
DUBUQUE
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Ip�Q ASSOCIATION, LTD.
& CEO