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Dubuque Racing Association Lease: Dubuque Racing Association Phase 2 Financing, Amended Leasehold Mortgage_InitiateCity of Dubuque City Council Meeting Copyrighted April 1, 2024 Items to be set for Public Hearing # 01. ITEM TITLE: Dubuque Racing Association Lease: Dubuque Racing Association Phase 2 Financing, Amended Leasehold Mortgage SUMMARY: City Attorney recommending City Council set a public hearing for April 9, 2024, on the amendment to the lease and the consent to the amended leasehold mortgage. RESOLUTION Intent to dispose of an interest in real propertythrough an amendment to the existing lease agreement with the Dubuque Racing Association, LTD. and approving an amendment to the leasehold mortgage between the Dubuque Racing Association, LTD and MidWestOne Bank SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for April 9, DISPOSITION: 2024Suggested Disposition: ATTACHMENTS: Description Type Staff Memo Staff Memo Resolution Resolutions Notice Supporting Documentation Supporting Documents Supporting Documentation Supporting Documents Supporting Documentation THE CITY OF DUB TEI Masterpiece on the Mississippi CRENNA M. BRUMWELL, ESQ. CITY ATTORNEY TO: MAYOR BRAD M. CAVANAGH & MEMBERS OF THE CITY COUNCIL DATE: MARCH 28, 2024 Dubuque AII•AneftCft wi�uv�irx�x 2007-2012.2013 2017*2019 RE: DUBUQUE RACING ASSOCIATION LEASE DUBUQUE RACING ASSOCIATION PHASE 2 FINANCING, AMENDED LEASEHOLD MORTGAGE The City of Dubuque in conjunction with the Dubuque Racing Association (DRA) and community participants have worked diligently for years to procure a Chaplain Schmitt Island Master Plan and Schmitt Island Placemaking & Implementation Plan. Work on implementation of the plans has been ongoing. The biggest project to date has been the Veteran's Memorial. A Community Project Funding grant was received via Representative Hinson for construction of the Veterans Memorial Trailhead Project and will be constructed in 2024. In 2022 the City invested millions of dollars in improvements to ImOn Arena. Additional improvements to the arena are currently in process. The Chaplain Schmitt Island Master Plan was adopted in 2014 and amended in 2017. The Chaplain Schmitt Island Placemaking & Implementation Plan was adopted in 2017. The goals of the plan were largely recreational focused and included connecting and expanding access to the riverfront, creation of educational opportunities on the island, highlighting the unique characteristics of the island, bringing new visitors to the island, and offering activities and events for all seasons. The largest tenant on the island is the DRA leasing and operating Q Casino. The DRA, in partnership with the City of Dubuque, has proposed approximately $155 million dollars in public and private improvements to the island. The improvements completed or proposed include: Public Improvements • Iowa Amphitheater on Chaplain Schmitt Island ($15 million) • Veterans Memorial Trailhead Project and Other Trail Projects ($5 million) OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 589-4381 / FAX (563) 583-1040 / EMAIL cbrumwel@cityofdubuque.org • Chaplain Schmitt Island connectivity and access improvements including a railroad overpass at 14th Street (Over $40 million) • Sanitary Sewer Improvements (—$3 million) • ImOn Ice Arena Improvements (—$5 million) Private Improvements - $83 million • Construction of a new 8-story, 108 room Hilton Tapestry Collection hotel adjacent to the existing Hilton Garden Inn, including an upscale rooftop restaurant, lounge, and event space overlooking the Mississippi River • Interior casino remodel, including elevated bar with bar top slot machines and updated showroom, new Sports Book, and new sports bar. • New banquet space and party rooms • Additional of a family entertainment zone for all ages with high -end arcade games • Exterior casino upgrades including the fagade, signage, landscaping, and surface parking The private improvements to the island necessitate: • An amendment to the lease between the City and DRA. • Financing of the improvements by the DRA. The lender for DRA, which is MidWestOne Bank, requires the City consent to an amended leasehold mortgage between the DRA and MidWestOne Bank. An amendment to the lease has been negotiated between the City and DRA for Lot 1 of Chaplain Schmitt Island which contains the area where the casino, existing hotel and restaurant, and the new hotel are located. The amendment to Section 12 of the lease increases the total DRA project cost from $80 million dollars to $85 million dollars which takes into account an additional $3 million dollars in costs related to the Phase 2 improvements and provides $2 million in additional capacity to account for project changes and/or modifications. The balance of the existing lease terms remain the same. The lease amendment and consent to the amended leasehold mortgage has been reviewed and negotiated between the parties. Public hearing on the amendment to the lease and the consent to the amended leasehold mortgage is to be scheduled for April 9, 2024. Staff respectfully recommends approval. CC' Michael C. Van Milligen, City Manager Teri Goodmann, Director of Strategic Partnerships Marie Ware, Leisure Services Director Wally Wernimont, Planning Services Director Jill Connors, Economic Development Director Steve Sampson Brown, Project Manager Alex Dixon, CEO and President, Dubuque Racing Association Mike Donahue, Dubuque Racing Association Board Chair Tonya Trumm, O'Connor & Thomas, DRA Legal Counsel Prepared by Crenna Brumwell 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 RESOLUTION NO.73 - 24 INTENT TO DISPOSE OF AN INTEREST IN REAL PROPERTY THROUGH AN AMENDMENT TO THE EXISTING LEASE AGREEMENT WITH THE DUBUQUE RACING ASSOCIATION, LTD. AND APPROVING AN AMENDMENT TO THE LEASEHOLD MORTGAGE BETWEEN THE DUBUQUE RACING ASSOCIATION, LTD AND MIDWESTONE BANK WHEREAS, the City of Dubuque, Iowa (City) is the owner of the real property legally described as Lot 1 of Chaplain Schmitt Island in the City of Dubuque, Iowa, according to the Plat recorded as Instrument #2023-7679, records of Dubuque County, Iowa (the Property); and WHEREAS, the Property is subject to a Lease Agreement between City and the Dubuque Racing Association (DRA); and WHEREAS, the parties now desire to amend provision 12 of the Lease Agreement; and WHEREAS, the DRA is in progress with an $83 million construction project which requires financing with a lending institution; and WHEREAS, the City has previously consented to the overall construction project and Phase 1 financing of the improvements through a Leasehold Mortgage between the DRA and MidWestOne Bank; and WHEREAS, the DRA seeks City consent to an amendment to its Leasehold Mortgage with MidWestOne Bank for Phase 2 of its financing of the improvements; and WHEREAS, the City Council believes it is in the best interests of the City to approve the Amendment to its Lease Agreement with the DRA and WHEREAS, THE City Council believes it is in the best interests of the City to consent to amended Leasehold Mortgage between the DRA and MidWestOne Bank for Phase 2 of the DRA's financing of the improvements. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Council intends to dispose of City's interest in the foregoing - described real property pursuant to: An Amendment to its Lease Agreement with the DRA, and Consent to an amendment to the Leasehold Mortgage between the DRA and MidWestOne Bank for the financing of Phase 2 of the improvements by the DRA.. Section 2. The City Clerk is hereby authorized and directed to cause this Resolution and a Notice to be published as prescribed by Iowa Code §364.7 of a public hearing on City's intent to dispose of the foregoing -described real property, to be held on the 9th day of April 2024, at 6.30 o'clock p.m. in the City Council Chambers at the Historic Federal Building, 350 W. 6th Street, Dubuque, Iowa Passed, approved and adopted this 1 st day of April, 2024. Attest: Adrienne Breitfelder, City Clerk .• M. Cav,9:r4gh, Mayo 2 CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 9th day of April 2024, at 6:30 p.m. in the Historic Federal Building, 350 West Sixth Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes to dispose of an interest in real property to the Dubuque Racing Association Ltd. through an Amendment to the Lease Agreement between the City and the Dubuque Racing Association Ltd. and by consenting to an amended leasehold mortgage between the Dubuque Racing Association Ltd. and MidWestOne Bank. The real property encumbered by the Lease Agreement is: Lot 1 of Chaplain Schmitt Island in the City of Dubuque, Iowa, according to the Plat recorded as Instrument #2023-7679, records of Dubuque County, Iowa. At the meeting, the City Council will receive oral and written comments from any resident or property owner of said City to the above action. The official agenda will be posted the Friday before the meeting and will contain public input options. The City Council agenda can be accessed at: https:Hcityofdubuque.novusagenda.com/AgendaPublic/ or by contacting the City Clerk's Office at 563-589-4100, ctyclerk(a�cityofdubugue.org. Written comments regarding the above public hearings may be submitted to the City Clerk's Office, before said time of public hearing: via email at ctyclerk cityofdubugue.org or by mail to City Clerk's Office, City Hall, 50 W. 13th St., Dubuque, IA 52001. At said time and place of public hearings the City Council will receive any written comments. Copies of supporting documents for the public hearings are on file in the City Clerk's Office and may be viewed Monday through Friday between 8:00 a.m. and 5:00 p.m. Individuals with limited English proficiency, vision, hearing, speech, or other impairments requiring special assistance should contact the City Clerk's Office at (563) 589-4100, ctyclerk(a)-cityofdubug ue.org as soon as feasible. Deaf or hard -of -hearing individuals can use Relay Iowa by dialing 711 or (800) 735-2942. Published by order of the City Council given on the day of April 2024. Adrienne Breitfelder, City Clerk FIRST AMENDMENT TO AMENDED AND RESTATED LEASE AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND -- DUBUQUE-RAGING ASSOC—IA-T-ION—L—T-D. This First Amendment to Amended and Restated Lease Agreement (this "Amendment") is dated for reference purposes as of the 15t"' day of April, 2024, and is by and between the City of Dubuque, Iowa, a municipal corporation ("City"), and Dubuque Racing Association, Ltd., an Iowa nonprofit corporation ("Association"). WHEREAS, City and Association are parties to that certain Amended and Restated Lease Agreement dated September 19, 2023 (the "Lease"), with respect to the real estate described on attached Exhibit A (hereinafter, the "Leased Premises"); and WHEREAS, City and Association desire and intend to amend certain provisions of the Lease as set forth herein. NOW, THEREFORE, City and Association, in consideration of the mutual covenants and conditions hereinafter set forth, agree as follows: 1. Definitions. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Lease. 2. Amendment to Section 12 of the Lease. Effective as of the date of this Amendment, Section 12 of the Lease is hereby amended and restated in its entirety to read as follows: "12. Alterations. City acknowledges that Association has entered into certain contracts with respect to various improvements to be made to Association's facilities on the Leased Premises, which include the remodel of the casino facility, the addition of a family entertainment zone, and the addition of a new hotel and restaurant (the "Project"), the total cost of which Project will not exceed $85,000,000.00. Subject to its approval of the various financing related documents to be entered into by Association in connection with the Project (the "Project Financing Documents"), City hereby consents to and approves the Project. City further acknowledges that the Project Financing Documents require Association to commit cash equity to the Project in a minimum amount of twenty- five percent (25%) of the total cost of the Project (the "Equity Contribution"). Notwithstanding anything to the contrary contained in this Lease (including, without limitation, any limitation on Association's use of cash or funds and/or any provision or covenant requiring use of such cash or funds for a different purpose), City hereby consents to and authorizes Association to make or fund the Equity Contribution with the following sources of cash: (a) capital reserves established in connection with any portion of the Leased Premises (including, without limitation, up to $3,000,000.00 of funds on deposit in the Capital Reserve Fund); (b) portions of Association's cash reserves and cage cash; (c) proceeds of a loan from Dubuque Initiatives; and (c) to the extent authorized by the subcommittee with discretion over the funds contained therein, funds from the Schmitt Island Master Plan Implementation Fund, subject to the prior obligations committed to by the subcommittee and obligated under the Lease between City and Association for the Destination Iowa Grant Application and associated projects. Other -than -the Pr -Pr —Association -shall -not commenee-alterations-to-any-structure or structures or make additions to any existing structures or facilities in an amount exceeding One -Hundred Thousand Dollars ($100,000.00) without the prior written approval of the plans and specifications by City. Any improvements, modifications or additions to the Leased Premises wheresoever located or however financed shall become part of the real estate and owned by City upon terinination of this Lease. City consent is not required for any items in Association's CIP budget except for improvements to the Leased Premises costing over $100,000.00, or for capital improvements to be financed by incurring debt in excess of $100,000.00. City consent is not required for Association expenditures for ongoing replacement of slot machines and other video games, or for equipment replacement in the normal course of business." 3. Reference to and Effect on the Lease. Except as expressly set forth in this Amendment, all of the terms and provisions of the Lease are and shall remain in full force and effect and are hereby ratified and confirmed. Unless the context requires otherwise or as otherwise expressly set forth herein, any references to the Lease contained therein shall be deemed to refer to the Lease as amended by this Amendment. The amendments provided for herein are limited to the specific provisions of the Lease specified herein and shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any party under the Lease, or constitute a waiver or amendment of any other provision of the Lease, except as and to the extent expressly set forth herein. 4. Counterparts. This Amendment may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of a signature page of this Amendment by telecopy or other electronic means shall be effective as delivery of a manually executed counterpart hereof. 5. Governing _Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Iowa. 6. Effectiveness of Amendment. The parties acknowledge and agree that this Amendment must be approved by Association's Board of Directors, Association's lender, the City Council of Dubuque, Iowa, and the Iowa Racing and Gaming Commission. Accordingly, notwithstanding anything to contrary contained herein, this Amendment shall become effective as of the date of receipt of the last of such required approvals. 7. Memorandum for Recording. The parties mutually agree that, if necessary or desirable for title purposes, a Memorandum of First Amendment to Amended and Restated Lease Agreement may be executed and filed of record in lieu of recording this Amendment. IN WITNESS WHEREOF, each of the parties hereto has executed this First Amendment to Amended and Restated Lease Agreement as of the date first written above. CITY OF DUBUQUE, IOWA By: Michael Van Milligen, City Manager Attest: City Clerk 3 DUBUQUE RACING ASSOCIATION, LTD. By: &Z�7� jll'---�� Alex Dixon, Pre ident and CEO EXHIBIT A LEASED PREMISES Lot 1 of CHAPLAIN SCHMITT ISLAND in the City of Dubuque, Iowa, according to the Plat recorded as Instrument #2023-7679, records of Dubuque County, Iowa. FIRST AMENDMENT TO LEASEHOLD MORTGAGE, FIXTURE FILING AND SECURITY AGREEMENT WITH ABSOLUTE ASSIGNMENT OF LEASES AND RENTS Recorder's Cover Sheet Preparer Information: Fuerste, Carew, Juergens & Sudmeier, P.C. 890 Main Street, Suite 200 Dubuque, Iowa 52001 (563)556-4011 Attn: Stephan Alt Taxpayer Information: Dubuque Racing Association, Ltd. 1855 Greyhound Park Road Dubuque, Iowa 52001 Return Document To: Fuerste, Carew, Juergens & Sudmeier, P.C. 890 Main Street, Suite 200 Dubuque, Iowa 52001 Attn: Stephan Alt Mortgagor: Dubuque Racing Association, Ltd. Mortgagee: MidWestOne Bank Legal Description: See Exhibit "A" Document or instrument number of previously recorded documents: 2023-10305 NOTICE: This Amendment to Mortgage modified and secures credit in the amount of $93,705,792. Loans and advances up to this amount, together with interest, are senior to indebtedness to other creditors under subsequently recorded or filed mortgages and liens. THIS MORTGAGE ALSO CONSTITUTES A FIXTURE FILING [1] FIRST AMENDMENT TO LEASEHOLD MORTGAGE, FIXTURE FILING AND SECURITY AGREEMENT WITH ABSOLUTE ASSIGNMENT OF LEASES AND RENTS THIS FIRST AMENDMENT TO LEASEHOLD MORTGAGE, FIXTURE FILING AND SECURITY AGREEMENT WITH ABSOLUTE ASSIGNMENT OF RENTS ("Amendment"), made as of April 19, 2024, by and between DUBUQUE RACING ASSOCIATION, LTD., an Iowa nonprofit corporation ("Mortgagor"), and MIDWESTONE BAND ("Lender" or "Mortgagee"; hereinafter the terms "Lender" and "Mortgagee" may be used interchangeably). RECITALS A. Mortgagor previously executed that certain Leasehold Mortgage, Fixture Filing and Security Agreement With Absolute Assignment of Rents dated October 20, 2023, in favor of Lender with respect to certain real property as described in Exhibit "A", attached hereto and incorporated herein by this reference, together with the improvements now or hereafter erected thereon, which was recorded in the records of the Dubuque County, Iowa Recorder on October 31, 2023, as Instrument # 2023-10305 (as hereby amended and as from time to time further amended, modified, supplemented, restated or amended and restated, the "Mortgage") securing credit in the amount of Fifty -One Million Three Hundred Eight Thousand Seven Hundred Seventy -Five and 00/100 Dollars ($51,308,775.00); B. Mortgagor and Mortgagee previously executed that certain Credit Agreement dated October 20, 2023, as amended and restated by that certain Amended and Restated Credit Agreement dated as of even date herewith (as the same may be further varied, amended, restated, renewed, consolidated, extended or otherwise supplemented from time to time, the "2024 Credit Agreement") under which Mortgagee has agreed to make additional loans to Mortgagor in the amount of Thirty -Five Million Nine Hundred Seventy -Two Thousand One Hundred Seventy -Nine and 00/100 Dollars ($35,972,179.00) (the "2024 Loan") thereby increasing the total loan commitment under the 2024 Credit Agreement to Sixty - Five Million Seven Hundred Forty Thousand Eight Hundred Fifty and 00/100 Dollars ($65,740,850.00); C. The 2024 Loan is evidenced by certain Promissory Notes executed by Mortgagor on or after the date hereof (the "2024 Notes"); D. In connection with the execution and delivery of the 2024 Credit Agreement, Mortgagor has agreed to execute and deliver this Amendment as collateral security for the Mortgagor's increased Obligations under the 2024 Credit Agreement and further has agreed to increase the amount secured by this Mortgage to Ninety -Three Million Seven Hundred Five Thousand Seven Hundred Ninety -Two and 00/100 Dollars ($93,705,792.00). NOW, THEREFORE, in consideration of the above Recitals and the mutual covenants herein contained, the parties hereto hereby agree as follows; AGREEMENT 1, Definitions. Unless otherwise defined herein, capitalized terms used in this Amendment shall have the meanings ascribed to such terms in the 2024 Credit Agreement. 2. Amendments to Mortgage. [2] a. The Notice language on the cover page of the Mortgage is hereby amended and restated in its entirety to read as follows: "NOTICE: This Mortgage secures credit in the amount of $93,705,792.00. Loans and advances up to this amount, together with interest, are senior to indebtedness to other creditors under subsequently recorded or filed mortgages and liens." b. Paragraph A of the Recitals is hereby amended and restated in its entirety to read as follows: "A. On or about October 20, 2023, Mortgagor executed that certain Credit Agreement dated October 20, 2023 (the "2023 Credit Agreement") relating to certain loans to be made by Mortgagee to Mortgagor in the amount of up to $29,768,671 (collectively the "2023 Loan"). On or about April 19, 2024, Mortgagor executed that certain Amended and Restated Credit Agreement dated April 19, 2024 (as the same may be varied, amended, restated, renewed, consolidated, extended or otherwise supplemented from time to time, the "2024 Credit Agreement"), which amended and restated the 2023 Credit Agreement in its entirety. Pursuant to the 2024 Credit Agreement, Mortgagee has agreed to make additional loans to Mortgagor in the amount of Thirty -Five Million Nine Hundred Seventy -Two Thousand One Hundred Seventy -Nine and 00/100 Dollars ($35,972,179.00) (the "2024 Loan") thereby increasing the total loan commitment under the 2024 Credit Agreement, when combined with the 2023 Loan commitment, to Sixty -Five Million Seven Hundred Forty Thousand Eight Hundred Fifty and 00/100 Dollars ($65,740,850.00)." c. Paragraph B of the Recitals is hereby amended and restated in its entirety to read as follows: "B. The 2023 Loan is evidenced by certain Promissory Notes executed by Mortgagor on or about October 20, 2023 (the "2023 Notes"), and the 2024 Loan is evidenced by certain Promissory Notes executed by Mortgagor on or about April 19, 2024 (the "2024 Notes")." d. Paragraph G of the Recitals is hereby amended and restated in its entirety to read as follows: "G. "Loan" collectively shall mean the 2024 Loan, the 2023 Loan, and the Existing Hilton Garden Loan." e. Paragraph H of the Recitals is hereby amended and restated in its entirety to read as follows: "H. "Credit Agreement" collectively shall mean the 2024 Credit Agreement and the Existing Hilton Garden Loan Agreement." f. Paragraph I of the Recitals is hereby amended and restated in its entirety to read as follows: "I. "Note" collectively shall mean the 2024 Notes, the 2023 Notes, and the Existing Hilton Garden Note." g. Section 2.2 of the Mortgage is hereby amended and restated in its entirety to read as follows: "2.2 Maturity Date. The latest maturity date of the Notes secured hereby is January 1, 2036." [3] 3. No Other Changes. Except as may be otherwise expressly set forth herein, each and every term, condition, warranty and provision of or exhibits to the Mortgage shall remain in full force and effect, and such are hereby ratified, confirmed and approved by the parties hereto. 4. Counterparts. This Amendment may be executed in any number of identical counterparts, any set of which signed by all the parties hereto shall be deemed to constitute a complete, executed original for all purposes. 5. Acknowledgment, Continuance and Reaffirmation of Mortgage. Mortgagor hereby acknowledges and agrees that: (a) the Mortgage is a valid and enforceable lien upon the Property; (b) the Mortgage, and each of the terms and conditions set forth therein, as amended by this Amendment, remains in full force and effect; (c) the Mortgage secures the obligations and credit described in the Mortgage, as amended by this Amendment, and as further described in the Loan Documents; (d) the Mortgage, as amended by this Amendment, shall be binding on any successors and assigns of the parties hereto; and (e) this Amendment represents the final agreement between the parties hereto as the subject matter hereof and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties hereto and there are no unwritten oral agreements between the parties hereto. 6. Reaffirmation. Mortgagor hereby expressly reaffirms each of the representations, warranties and covenants set forth in the Mortgage, as amended by this Amendment. Governing Law. This Amendment shall be governed by, and construed and interpreted in accordance with, the laws of the State of Iowa applicable to agreements made and wholly performed within such state. Choice of Venue. If there is a lawsuit, Mortgagor agrees upon Lender's request to submit to the jurisdiction of the courts of Dubuque County, State of Iowa. 9. Incorporation of Recitals. The Recitals to this Amendment are true, correct, and incorporated herein by reference. 10. Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 11. Severability. Whenever possible, each provision of this Amendment shall be interpreted in such manner as to be .effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment. 12. Headings. The descriptive headings in this Amendment are inserted for convenience of reference only and shall not affect the construction of this Amendment. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the entity, person or persons may require. 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 [4] CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. MORTGAGOR ACKNOWLEDGES THE RECEIPT OF A COPY OF THIS DOCUMENT AT THE TIME IT WAS SIGNED. [Remainder of Page Intentionally Left Blank, Signature Pages Follow] [5] IN WITNESS WHEREOF, Mortgagor has executed this Amendment, effective as of the day and year set forth above. MORTGAGOR: DUBUQUE RACING ASSOCIATION LTD. By: _ //,t/1 � Alex Dixon President and Chief Executive Officer STATE OF IOWA ) ss: COUNTY OF DUBUQUE ) This instrument or record was acknowle ed before r1w, on ,, 2024 by Alex Dixon as CEO and President of Dubuque Racing Associ tion, Lt TONYA ATRUMM Commission Numbg7 Q N My Comm. Ezp By signing below, the City of Dubuque, Iowa7(the "City"), is signing this Amendment solely to evidence the City's consent to Mortgagor's execution and delivery of this Amendment and not as an indication that the City is pledging any interest that the City owns in the real estate subject to the Mortgage. CITY: STATE OF IOWA ) ) ss: COUNTY OF DUBUQUE ) CITY OF DUBUQUE, IOWA Brad M. Cavanagh, Mayor Attest: Adrienne N. Breitfelder, City Clerk This instrument or record was acknowledged before me on April , 2024 by Brad M. Cavanagh, as Mayor of the City of Dubuque, Iowa, and Adrienne N. Breitfelder, as City Clerk of the City of Dubuque, Iowa. Notary Public [Signature page to First Amendment to Leasehold Mortgage, Fixture Filing and Security Agreement with Absolute Assignment of Leases and Rents] [6] EXHIBIT A (Description of Land) Lot 1 of CHAPLAIN SCHMITT ISLAND in the City of Dubuque, Iowa, according to the Plat recorded as Instrument #2023-7679, records of Dubuque County, Iowa. [71