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Platinum Holdings, Riverfront LeaseCITY OF DUBUQUE, IOWA MEMORANDUM May 31, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Platinum Holdings, LLC The Development Agreement between the City and Platinum Holdings, LLC provides for a closing on the Land Lease to occur on or before June 4, 2001. It was anticipated that Platinum Holdings would need to mortgage the property as part of the financing on the project to construct the riverfront hotel and indoor water park. Platinum Holdings has requested consent to that mortgage and Corporation Council Barry Lindahl and City Bond Council Bill Noth have reviewed all documents and find them to be in acceptable form. I respectfully recommend the Mayor and City Council approve the mortgage doCuments and proceed to closing with Platinum Holdings. MCVM/jh Attachment CC; Michael C. Van Milligen Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager ¥i ' nbnqna Q3Ai303U CITY OF DUBUQUE, IOWA MEMORANDUM May 31, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Platinum Holdings, LLC The Development Agreement between the City and Platinum Holdings, LLC provides for a closing on the Land Lease to occur on or before June 4, 2001. It was anticipated that Platinum Holdings would need to mortgage the property as part of the financing on the project to construct the riverfront hotel and indoor water park. Platinum Holdings has requested consent to that mortgage and Corporation Council Barry Lindahl and City Bond Council Bill Noth have reviewed all documents and find them to be in acceptable form. I respectfully recommend the Mayor and City Council approve the mortgage documents and proceed to closing with Platinum Holdings. MCVM/jh Attachment CC: Michael C. Van Milligen Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Barry A. Lindahl, Esq. Corporation Counsel 196 Dubuque Building 700 Locust Street Dubuque, Iowa 52001-6824 (319) 583-4113 (319) 583-1040 FAX E-maili baiesqC~hnwci.net May 30, 2001 Mr. Michael Van Milligen, City Manager ~ty Hall - City Manager's Office 50 West 13th Street Dubuque, IA 52001 RE: Platinum Holdings, L.L.C. Dear Mike: Plat'mum Holdings, L.L.C. has requested that the City consent to a mortgage of the property upon which the hotel and water park will be constructed in favor of American Trust & Savings Bank and that the City further consent to subordinate its interest in the property to the mortgage. Platinum has also requested the Cky's consent to an assignment of the Amended Development Agreement, Lease Agreement and Parking Use Agreement to American Trust & Savings Bank as security for the Bank's loans to Platinum for construction of the hotel and water park. City Bond Counsel Bill Noth and I have reviewed the documents and find that they are acceptable in form. Enclosed is a Resolution approving the documents for the City Council meeting of June 4, 2001. I would request that you submit the Resolution and accompanying documents to the City Council for action. Barry Lindahl 'Corporation Counsel BAL/jm Enclosure Wayne Norman, Esq. Thomas Johnson, Esq. Service People Integrity- Responsibility Innovation Teamwork RESOLUTION NO. 248-01 APPROVING A CONSENT AND SUBORDINATION TO MORTGAGE AGREEMENT FOR PLATINUM HOLDINGS, L.L.C. IN FAVOR OF AMERICAN TRUST AND SAVINGS BANK AND ASSIGNMENTS OF THE AMENDMED DEVELOPMENT AGREEMENT, LEASE AGREEMENT AND PARKING USE AGREEMENT BY PLATINUM HOLDINGS, L.L.C. TO AMERICAN TRUST AND SAVINGS BANK WHEREAS, the City of Dubuque (City) has entered into an Amended Development Agreement, Lease Agreement and Parking Use Agreement with Platinum Holdings, L.L.C. (Platinum) for the development of certain property owned by City (the Property) for a hotel and water park; AND WHEREAS, Platinum has requested that City consent to a mortgage of the Property in favor of American Trust & Savings Bank (the Bank) and that City subordinate its interests in the Property to the mortgage, a copy of which Consent and Subordination to Mortgage is attached hereto; AND WHEREAS, Plainfrffhas further requested that City consent to the assignment of the Development Agreement, Lease Agreement and Parking Use Agreement by Plainfiffto the Bank as security for Bank's loans to Platinum, copies of which Assignments are attached hereto; AND WHEREAS, the City Council funds that it is in the best interests of the City to approve ?htinm's request.. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, AS FOLLOWS: 1. The Consent and Subordination to Mortgage, Assignment of Amendment Development Agreement, Assignment of Lease Agreement, and Assignment of Parking Use Agreement, attached hereto, are hereby approved. 2. The Mayor Pro Tern is hereby authorized and directed to execute the documents on behalf of the City. Passed, approved and adopted this 4th day of June, 2001. Joseph T. Robbins, Mayor Pro Tern Attest: Jeanne F. Schneider, City Clerk Prepared by: Wayne A. Norman, Jr., Norman, Gilloon, Wright & Hamel, P.C., 800 Town Clock Plaza, P.O. Box 857, Dubuque, IA 52004-0857 (319) 556-6433 SPACE ABOVE THIS LINE FOR RECORDER IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. ASSIGNMENT OF LEASE AGREEMENT This Assignment of Lease Agreement ("Agreement") is effective ,2001, among Platinum Holdings, L.L.C., an Iowa limited liability company, Lessee, ("Borrower"), City of Dubuque, Iowa ("Lessor") and American Trust & Savings Bank ("Bank"). Recltals. Borrower has leased from the Lessor certain real property under a Lease dated June __, 2001, a copy of which is attached as Exhibit A ("Lease"). Bank has authorized the making of certain loans to Borrower by virtue of a Loan Agreement executed by Borrower and Bank dated , 2001, ("Loans"). The Loans are for the benefit of both Borrower and Lessor insofar as funds from the Loans will be used for the benefit of the business conducted on the leased premises. In consideration of the promises contained in this Agreement, and of the disbursement of part or all of the Loans by Bank, Borrower, with the consent of Lessor, assigns to Bank its rights under the Lease during the remainder of its term, including all extensions and renewals. This Agreement is for the sole purpose of securing payment of all amounts due by the Borrower to the Bank under the Loans, together with and including any refinancing, renewal or extension of such indebtedness. Upon payment in full of all indebtedness secured by this Agreement, this Agreement and the security interest created hereby shall become null and void and of no further force or effect. 2. Borrower and Lessor Further Covenant and Agree: Page 1 of 5 Borrower is not now in default in the performance of the Lease; Borrower and Lessor will each comply with the terms of the Lease for the term of the Loans and any extensions or renewals. o 2.2. 2.4. wp60docsXatsb~P]afinum. Assignment of Lease-053001 Borrower and/or Lessor will not materially modify the Lease without the prior written consent of Bank, which consent shall not be unreasonably withheld. If Borrower defaults under the terms of the Lease, Lessor shall have the right to terminate the Lease according to its terms: However, Lessor shall first give Bank thirty (30) days' written notice of such default and the right, at the option of Bank, during such period, to cure such default. During the thirty (30) day period, Lessor will take no action to enforce its claim arising from such default without Bank's prior written consent. If Borrower defaults in the performance of any of its obligations under the Loans, any renewals or extensions, or of any related agreement, and Borrower has not cured such default within the applicable cure period under the Loans or of any related agreement, then Bank, at its option, may, upon receiving the consent of the Lessor, using such reasonable force as may be necessary, enter said leased premises and do any one or more of the following: (1) Remove all property of Borrower that is pledged as collateral for the Loans; (2) Sell such property; (3)Transfer and assign the Lease and Borrower's rights in it to parties satisfactory to City and Bank, and upon assignment the obligations of the Lease shall be binding on such transferees. In the event that Bank undertakes the options provided in Subsections (1) or (2), it shall have no obligation other than payment of rent accruing and performance of the terms of the Lease dtrring the period of its possession of the premises. In the event that Bank transfers the Lease as provided in Subsection (3), Bank will cure all defaults in said Lease, and its sole other obligation shall be the payment of rent which accrued prior to the transfer of said Lease and the pm~formance of the terms of the Lease prior to the transfer. Subordination. Lessor subordinates any lien it has or may have on the property of Borrower that is or may be security for the Loans to Bank's liens on Borrower's property, and to Bank's rights under this Agreement. Warranty of Title. Lessor warrants that title to the leased premises is held by it in fee simple and that it has full power and authority to enter into this Agreement. Notices. Ail notices under this Agreement shall be in writing and shall be deemed delivered if delivered in person, if sent by certified mail (postage prepaid, return receipt requested), telegraph or facsimile, as follows: If to Bank: American Trust & Savings Bank Attn.: Jeffrey L. Vorwald or Victoria J. Richter 895 Town Clock Plaza P.O. Box 857 Page 2 of 5 Dubuque, IA 52004-0938 If to Borrower: If to Lessor: PlatinumHoldlngs, L.L.C. Attn.: James P. Rix, Manager 801 Jackson Street Dubuque, IA 52001 City of Dubuque, Iowa Attn.: City Manager City Hall 50 West 13th Street Dubuque, IA 52001 Applicable Law; Severability. This Agreement shall be subject to, construed and enforced in accordance with the laws of the State of Iowa. If any provision of this Agreement is held invalid under applicable Law, such invalidity shall not affect any other provision of this Agreement that can be given effect without the invalid provision, and to this end, the provisions hereof are severable. Binding Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties. Neither Borrower nor Lessor shall assign any of its rights or obligations hereunder without the prior written consent of Bank. InterDretatlon; Headings. Words and phrases herein shall be interpreted and understood according to the context in which they are used. The headings in this Agreement are intended solely for convenience of reference, and shall be given no effect in the construction or interpretation of this Agreement. Entire Agreement; CounterDarts; Remedies Cumulative. This Agreement, including any Exhibits, all of which are incorporated by this reference, and the documents executed and delivered pursuant hereto, constitute the entire agreement between the parties, and may be amended only by a writing signed by each party. All agreements, instruments and documents referred to in this Agreement are by this reference made a part of this Agreement for all purposes. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. The parties shall have, in addition to the rights and remedies provided by this Agreement, all those allowed by all applicable laws, all of which shall be in extension of and not in limitation of those provided hereunder. Page 3 of 5 t0. 11. Waivers. Except as herein expressly provided, no waiver by either party of any breach of this Agreement, or of any warranty or representation hereunder, shall be deemed to be a waiver by the same party of any other breach of any kind or nature (whether preceding or succeeding the breach in question, and whether or not of the same or similar nature). 10.1. No acceptance by a party of payment or performance after any such breach shall be deemed to be a waiver of any breach of this Agreement or of any representation or warranty hereunder (unless such payment or performance cures such breach), whether or not the party knows of the breach when it accepts such payment or performance. 10.2. No failure by a party to exercise any right it may have under this Agreement or under law upon another party's default, and no delay in the exercise of that right, shall prevent it from exercising the right whenever the other party continues to be in default. No such failure or delay shall operate as a waiver of any default or as a modification of the provisions of this Agreement. Attorneys Fees. If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and costs of litigation from the other party. Such fees and costs of litigation may be set by the court in the trial of such action or by the arbitrator, as the case may be, or may be enforced in a separate action brought for that purpose. Such fees and costs of litigation shall be in addition to any other relief which may be awarded. Effective as of the date first written above. Platinum Holdings, L.L.C. City of Dubuque, Iowa By: James P. Rix, Manager American Trust & Savings Bank By: Jeffrey L. Vorwald, Vice President By: Joseph T. Robbins, Mayor Pro-Tem By: Jeanne F. Schneider,City Clerk Page 4 of 5 STATE OF IOWA, DUBUQUE COUNTY) ss: On this day of ,2001, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared James P. Rix, to me personally known, who being by me duly sworn, did say that he is the Manager of the limited liability company executing the within and foregoing insmunent to which this is attached; that said instrument was signed on behalf of the limited liability company by authority of its Managers; and that James P. Rix, as Manager, acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the limited liability company, by it and by him voluntarily executed. Notary Public, State of Iowa STATE OF IOWA, DUBUQUE COUNTY) ss: On this day of ,2001, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Joseph T. Robbins, and Jeanne F. Schneider, to me personally known, who, being by me duly sworn, did say that they are the Mayor Pro-Tern and City Clerk, respectively, of the City of Dubuque, Iowa, executing the within and foregoing instrument, that no seal has been procured by the corporation; that said instrument was signed on behalf of the City by authority of ils City Council; and that Joseph T. Robbins and Jeanne F. Schneider, as Mayor Pro-Tern and City Clerk, respectively, acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the City, by it and by them voluntarily executed. Notary Public, State of Iowa STATE OF IOWA, DUBUQUE COUNTY) ss: On this day of ,2001, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Jeffrey L. Vorwaid, to me personally known, who being by me duly sworn, did say that he is an officer of the Bank executing the within and foregoing instrument to which this is attached; that said instrument was signed on behalf of the Bank by authority of its Board of Directors; and that Jeffrey L. Vorwald, as officer of the Bank, acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the Bank, by it and by him voluntarily executed. Notary Public, State of Iowa Page 5 of 5 CONSENT AND SUBORDINATION TO MORTGAGE Re: Certain Real Estate Described on Exhibit A, Attached. The undersigned City of Dubuque, Iowa ("City"), is the owner of the above-described property ("the Property") described in the mortgage ("the Mortgage") to which this Consent and Subordination to Mortgage is attached,, and hereby consents to the mortgaging of the Property by Platinum Holffmgs, L.L.C., an Iowa lira/ted liability company (Platinum), in favor of American Trust & Savings Bank, Dubuque, Iowa (Bank), in an amount not to exceed Fourteen Million Eight Hundred Thousand & 00/100 Dollars ($14,800,000.00). City further consents that the interest o,reed by City shall be subordinate,junior and inferior to the mortgage established in favor of Bank, subject to the following: In the event foreclosure is brought, City consents to being named a party defendant for the purposes of foreclosing its interests in the Property, but with no personal liability being incurred or any deficiency judgment resulting by or against City. In the event of any foreclosure by Bank, Bank agrees to be bound by the terms and conditions of that certain Minimtma Assessment Agreement entered into between City and Platinum on 2001, and that certain Amended Development Agreement entered into between City and Platinum on _, 2001, with respect to the Property. City agrees that this Consent and Subordination to Mortgage document will be attached to, and become a part of, the executed Mortgage between Bank and Platinum. Bank executes this Consent and Subordination to Mortgage solely for the purpose of agreeing to be bound by the terms of the agreements referred to in Section 2, above, in the event of foreclosure by Bank. Dated ,2001. City of Dubuque, Iowa American Trust & Savings Bank By: By: Joseph T. Robbins, Mayor Pro-Tern Jeanne F. Schneider, City Clerk By: Jeffrey L. Vorwald, Vice President STATE OF IOWA, DUBUQUE COUNTY) ss: wp60docs~atsb\Plafinum. Mortgage Consent & Subordinatlon-053001 Page l of 2 On this _ day of .......... 2001, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Joseph T. Robbins and Jeanne F. Schneider, to me personally known, who, being by me duly sworn, did say that they are the Mayor Pro-Tern and Ciw Clerk, respectively, of the City of Dubuque, Iowa, executing the within and foregoing insWament, that no seal has been procured by the corporation; that said instrument was signed on behalf of the City by anthority of its City Council; and that Joseph T. Robbins and Jeanne F. Schneider, as Mayor Pro-Tern and City Clerk, respectively, acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the City, by it and by them voluntarily executed. Notm¥ Public, State of Iowa STATE OF IOWA, DUBUQUE COUNTY) ss: On this ____ day of ...... 2001, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Jeffrey L. Vorwald, to me personally known, who, being by me duly sworn, did say that he is the Vice President of American Trust & Savings Bank executing the w/thin and foregoing inslrument~ that no seal has been procured by the corporation; that said instamment was signed on behalf of the corporation by authority of its Board of Directors; and that Jeffrey L. Vorwald, as Vice President, acknowledged the execution of the foregoing insirument to be the voluntary act and deed of the corporation, by it and by him voluntarily executed. Notary Public, State of Iowa Page 2 of 2 Prepared by: Wayne A. Norman, Jr., Norman, Gilloon, Wright & Hamel, P.C., 800 Town Clock Plaza, P.O, Box 857, Dubuque, IA 5201M-0857 (319) 556-6433 SPACE ABOVE THIS LINE FOR RECORDER IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. ASSIGNMENT OF AMENDED DEVELOPMENT AGREEMENT This Assignment of Amended Development Agreement ("Agreement") is effective , 2001, among Platinum Holdings, L.L.C., an Iowa limited liability company ("Borrower"), City of Dubuque, Iowa ("City") and American Trust & Savings Bank ("Bank"). Recitals. Effective January 15, 2001, Borrower entered into an Amended Development Agreement ("Development Agreement") with City under which Borrower will lease from City approximately 3.5 acres of land within the Ice Harbor Urban Renewal District, located within the City, for the purpose of redeveloping such property. A copy of said Development Agreement, as subsequently amended, is attached as F~hlbit A. Bank has authorized the making of certain loans to Borrower by virtue of a Loan Agreement executed by Borrower and Bank effective , 2001, ("Loans"). The Loans are for the benefit of both Borrower and City insofar as funds from the Loans will be used for redevelopment purposes under the Development Agreement. In consideration of the promises contained in this Agreement, and of the disbursement of part or all of the Loans by Bank, Borrower, with the consent of City, assigns to Bank its rights under the Development Agreement during the remainder of its term, including all extensions and renewals. This Agreement is for the sole purpose of securing payment of all amounts due by the Borrower Page 1 of 5 to the Bank under the Loans, together with and including any refinancing, renewal or extension of such indebtedness. Upon payment in full of all indebtedness secured by this Agreement, this Agreement and the security interest created hereby shall become null and void and of no further force or effect. wp60docs~atsbWlatinur~ Assigamcnt - Development Agreeracnt-053001 Borrower and City Further Covenant and Agree: Borrower is not now in default in the performance of the Redevelopment Agreement; Borrower and City will each comply with the terms of the Development Agreement for the term of the Loans and any extensions or renewals. 2.2. Borrower and/or City will not materially modify the Development Agreement without the prior written consent of Bank, which shall not be unreasonably withheld. 2.3. If Borrower defaults under the terms of the Development Agreement, City shall have the right to terminate the Redevelopment Agreement according to its terms. However, City shall first give Bank thirty (30) days' written notice of such default and the right, at the option of Bank, during such period, to cure such default. During the thirty (30) day period, City will take no action to enforce its claim arising from such default without Bank's prior written consent. 2.4. If Borrower defaults in the performance of any of its obligations under the Loans, any renewals or extensions, or of any related agreement, and Borrower has not cured such default within the applicable cure period under the Loans or of any related agreement, then Bank, at its option, may, upon receiving the written consent of the City, transfer and assign the Development Agreement and Borrower's rights in it to parties reasonably satisfactory to City and Bank, and upon assignment the obligations of the Redevelopment Agreement shall be binding on such transferees. In that event, Bank shall have no obligation other than performance of the terms of the Development Agreement during the period of its possession of the premises. In the event that Bank transfers the Redevelopment Agreement as provided above, Bank will cure all defaults in said Redevelopment Agreement. Notices. Ail notices under this Agreement shall be in writing and shall be deemed delivered if delivered in person, if sent by certified mail (postage prepaid, return receipt requested), telegraph or facsimile, as follows: Page 2 of 5 If to Bank: American Trust & Savings Bank Attn.: Jeffrey L. Vorwald or Victoria J. Richter 895 Town Clock Plaza P.O. Box 857 Dubuque, IA 52004-0938 If to Borrower: Platinum Holdlngs, L.L.C. Attn.: James P. Rix, Manager 801 Jackson Street Dubuque, IA 52001 If to City: City of Dubuque, Iowa Attn.: City Manager City Hall 50 West 13th Street Dubuque, IA 52001 ApDlicable Law; Severability. This Agreement shall be subject to, construed and enforced in accordance with the laws of the State of Iowa. If any provision of this Agreement is held invalid under applicable Law, such invalidity shall not affect any other provision of this Agreement that can be given effect without the invalid provision, and to this end, the provisions hereof are severable. Binding Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties. Neither Borrower nor City shall assign any of its rights or obligations hereunder without the prior written consent of Bank. InterDretation; Headings. Words and phrases herein shall be interpreted and understood according to the context in which they are used. The headings in this Agreement are intended solely for convenience of reference, and shall be given no effect in the construction or interpretation of this Agreement. Entire Agreement; CounterDarts; Remedies Cumulative. This Agreement, including any Exhibits, all of which are incorporated by this reference, and the documents executed and delivered pursuant hereto, constitute the entire agreement between the parties, and may be amended only by a writing signed by each party. All agreements, instruments and documents referred to in this Agreement are by this reference made a part of this Agreement for all purposes. This Page 3 of 5 o Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. The parties shall have, in addition to the rights and remedies provided by this Agreement, all those allowed by all applicat)le laws, all of which shall be in extension of and not in limitation of those provided hereunder. Waivers. Except as herein expressly provided, no waiver by either party of any breach of this Agreement, or of any warranty or representation hereunder, shall be deemed to be a waiver by the same party of any other breach of any kind or nature (whether preceding or succeeding the breach in question, and whether or not of the same or similar nature). No acceptance by a party of payment or performance after any such breach shall be deemed to be a waiver of any breach of this Agreement or of any representation or warranty hereunder (unless such payment or performance cures such breach), whether or not the party knows of the breach when it accepts such payment or performance. 8.2. No failure by a party to exercise any right it may have under this Agreement or under law upon another party's default, and no delay in the exercise of that right, shall prevent it from exercising the right whenever the other party continues to be in default. No such failure or delay shall operate as a waiver of any default or as a modification of the provisions of this Agreement. Attorney's Fees. If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and costs of litigation from the other party. Such fees and costs of litigation may be set by the court in the trial of such action or by the arbitrator, as the case may be, or may be enforced in a separate action brought for that purpose. Such fees and costs of litigation shall be in addition to any other relief which may be awarded. Effective as of the date first written above. Page 4 of 5 Platinum Holdings, L.L.C. City of Dubuque, Iowa By: By: James P. Rix, Manager American Trust & Savings Bank Joseph T. Robbins, Mayor Pro-Tem By: Jeanne F. Schneider, City Clerk By: Jeffrey L. Vorwald, Vice President STATE OF IOWA, DUBUQUE COUNTY) ss: On this day of ,2001, before me, the undm'signed, a Notary Public in and for the State of Iowa, personally appeared James P. Rix, to me personally known, who being by me duly sworn, did say that he is the Manager of the limited liability company executing the within and foregoing insmunent to which this is attached; that said instrument was signed on behalf of the limited liability company by authority of its Managem; and that James P. Rix, as Manager, acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the limited liability company, by it and by him voluntarily executed. Notary Public, State of Iowa STATE OF IOWA, DUBUQUE COUNTY) ss: On this day of ,2001, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Joseph T. Robbins and Jeanne F. Schneider, to me personally known, who, being by me duly sworn, did say that they are the Mayor Pro-Tern and City Clerk, respectively, of the City of Dubuque, Iowa, executing the within and foregoing instrument, that no seal has been procured by the corporation; that said instrument was signed on behalf of the City by authority of its City Council; and that Joseph T. Robbins and Jeanne F. Schneider, as Mayor Pro-Tem and City Clerk, respectively, acknowledged the execution of the foregoing insmmaent to be the voluntary act and deed of the City, by it and by them voluntarily executed. Notary Public, State of Iowa STATE OF IOWA, DUBUQUE COUNTY) ss: On this day of ,2001, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Jeffrey L. Vorwald, to me personally known, who being by me duly sworn, did say that he is an officer of the Bank executing the within and foregoing instrument to which this is attached; that said instrument was signed on behalf of the Bank by authority of its Board of Directors; and that Jeffrey L. Vorwald, as officer of the Bank, acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the Bank, by it and by him vohmtafily executed. Notary Public, State of Iowa Page 5 of 5 Prepared by: Wayne A. Norman, Jr., Norman, Gilloon, Wright & Hamel, P.C., 800 Town Clock Plaza, P.O. Box 857, Dubuque, IA 52004-0857 (319) 556-6433 SPACE ABOVE THIS LINE FOR RECORDER IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. ASSIGNMENT OF PARKING USE AGREEMENT This Assignment of Parking Use Agreement ("Agreement") is effective ,2001, among Platinum Holdings, L.L.C., an Iowa limited liability company, Lessee, ("Borrower"), City of Dubuque, Iowa ("Lessor") and American Trust & Savings Bank ("Bank"). Recitals. Borrower has entered in to a Parking Use Agreement with Lessor effective June . , 2001, a copy of which is attached as ~/~ib£t A ("Use Agreement"). Bank has authorized the making of certain loans to Borrower by virtue of a Loan Agreement executed by Borrower and Bank dated 2001, ("Loans"). The Loans are for the benefit of both Borrower and Lessor insofar as funds from the Loans will be used for the benefit of the business which is the subject of other agreements between Borrower and Lessor. In consideration of the promises contained in this Agreement, and of the disbursement of part or all of the Loans by Bank, Borrower, with the consent of Lessor· assigns to Bank its rights under the Use Agreement during the remainder of its term, including all extensions and renewals. This Agreement is for the sole purpose of securing payment of all amounts due by the Borrower to the Bank under the Loans, together with and including any refinancing, renewal or extension of such indebtedness. Upon payment in full of all indebtedness secured by this Agreement, this Agreement and the security interest created hereby shall become null and void and of no further force or effect. Page 1 of 5 Borrower and Lessor Further Covenant and Agree: Borrower is not now in default in the performance of the Use Agreement; Borrower and Lessor will each comply with the terms of the Use Agreement for the term of the Loans and any extensions or renewals. 2.2. wp60does~atsbXPlalinum. Assignment of Use Agreement-05300I Borrower and/or Lessor will not materially modify the Use Agreement without the prior written consent of Bank, which consent shall not be tm_reasonably withheld. 2.3. If Borrower defaults under the terms of the Use Agreement, Lessor shall have the right to terminate the Use Agreement according to its terms. However, Lessor shall first give Bank thirty (30) days' written notice of such default and the right, at the option of Bank, during such period, to cure such default. During the thirty (30) day period, Lessor will take no action to enforce its claim arising from such default without Bank's prior written consent. 2.4. If Borrower defaults in the performance of any of its obligations under the Loans, any renewals or extensions, or of any related agreement, and Borrower has not cured such default within the applicable cure period under the Loans or of any related agreement, then Bank, at its option and upon receiving the written consent of the Lessor, may assume and complete Borrower's obligations under the Use Agreement, or may transfer and assign the Use Agreement and Borrower's rights in it to parties reasonably satisfactory to City and Bank. Upon assignment the obligations of the Use Agreement shall be binding on such tmusferees. Warranty of Title. Lessor warrants that title to the leased premises is held by it in fee simple and that it has full power and authority to enter into this Agreement. Notices. All notices under this Agreement shall be in writing and shall be deemed delivered if delivered in person, if sent by certified mail (postage prepaid, return receipt requested), telegraph or facsimile, as follows: If to Bank: American Trust & Savings Bank Attn.: Jeffrey L. Vorwald or Victoria J. Richter 895 Town Clock Plaza P.O. Box 857 Dubuque, IA 52004-0938 If to Borrower: Platinum Holdings, L.L.C. Attn.: James P. Rix, Manager 801 Jackson Street Dubuque, IA 52001 Page 2 of 5 If to Lessor: City of Dubu~e, Iowa Attn.: City Manager City Hall 50 West 13th Street Dubuque, IA 52001 Applicable Law; Severability. This Agreement shall be subject to, construed and enforced in accordance with the laws of the State of Iowa. If any provision of this Agreement is held invalid under applicable Law, such invalidity shall not affect any other provision of this Agreement that can be given effect without the invalid provision, and to this end, the provisions hereof are severable. Binding Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties. Neither Borrower nor Lessor shall assign any of its rights or obligations hereunder without the prior written consent of Bank. Interpretation; Headings. Words and phrases herein shall be interpreted and understood according to the context in which they are used. The headings in this Agreement are intended solely for convenience of reference, and shall be given no effect in the construction or interpretation of this Agreement. Entire Agreement; Counterparts; Remedies Cumulative. This Agreement, including any Exhibits, all of which are incorporated by this reference, and the documents executed and delivered pursuant hereto, constitute the entire agreement between the parties, and may be amended only by a writing signed by each party. Ail agreements, instruments and documents referred to in this Agreement are by this reference made a part of this Agreement for all purposes, This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. The parties shall have, in addition to the rights and remedies provided by this Agreement, all those allowed by all applicable laws, all of which shall be in extension of and not in limitation of those provided hereunder. Waivers. Except as herein expressly provided, no waiver by either party of any breach of this Agreement, or of any warranty or representation hereunder, shall be deemed to be a waiver by the same party of any other breach of any kind or nature (whether preceding or succeeding the breach in question, and whether or not of the same or similar nature). Page 3 of 5 No acceptance by a party of payment or performance after any such breach shall be deemed to be a waiver of any breach of this Agreement or of any representation or warranty hereunder (unless such payment or performance cures such breach), whether or not the party knows of the breach when it accepts such payment or performance. 9.2. No failure by a party to exercise any right it may have under this Agreement or under law upon another party's default, and no delay in the exercise of that right, shall prevent it from exercising the right whenever the other party continues to be in default. No such failure or delay shall operate as a waiver of any default or as a modification of the provisions of this Agreement. 10. Attorneys Fees. If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and costs of litigation from the other party. Such fees and costs of litigation may be set by the court in the trial of such action or by the arbitrator, as the case may be, or may be enforced in a separate action brought for that purpose. Such fees and costs of litigation shall be in addition to any other relief which may be awarded. Effect£ve as of the date first written above. Platinum Holdings, L.L.C. City of Dubuque, Iowa By: J~nes P. Rix, Manager American Trust & Savings Bank By: Jeffrey L. Vorwald, Vice President By: Joseph T. Robbins, Mayor Pro-Tem By: Jeanne F. Schneider, City Clerk Page 4 of 5 STATE OF IOWA, DUBUQUE COUNTY) ss: On this day of ,2001, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared James P. Rix, to me personally kno~vn, who being by me duly sworn, did say that he is the Manager of the limited liability company executing the within and foregoing insmunent to which this is attached; that said insmunent was signed on behalf of the limited liability company by authority of its Managers; and that James P. Rix, as Manager, acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the limited liability company, by it and by him voluntarily executed. Notary Public, State of Iowa STATE OF IOWA, DUBUQUE COUNTY) ss: On this dayof ,2001, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Joseph T. Robbins and Jeanne F. Schneider, to me personally known, who, being by me duly sworn, did say that they are the Mayor Pro-Tern and City Clerk, respectively, of the City of Duhnque, Iowa, executing the within and foregoing instrument, that no seal has been procured by the corporation; that said instrument was signed on behalf of the City by authority of its City Council; and that Joseph T. Robbins and Jeanne F. Schneider, as Mayor Pro-Tern and City Clerk, respectively, acknowledged the execution of the foregoing instnnnent to be the voluntary act and deed of the City, by it and by them voluntarily executed. Notary Public, State of Iowa STATE OF IOWA, DUBUQUE COUNTY) ss: On this dayof ,2001, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Jeffrey L. Vorwald, to me personally known, who being by me duty sworn, did say that he is an officer of the Bank executing the within and foregoing insmunent to which this is attached; that said instrument was signed on behalf of the Bank by authority of its Board of Directors; and that Jeffrey L. Vorwald, as officer of the Bank, acknowledged the execution of the foregoing instmmant to be the voluntary act and deed of the Bank, by it and by him voluntarily executed. Notary Public, State of Iowa Pa~e 5 of 5