First Amendment to Development Agreement with Kinseth Hospitality, Inc.City of Dubuque
City Council
ACTION ITEMS # 2.
Copyrighted
April 7, 2025
ITEM TITLE: First Amendment to Development Agreement with Kinseth
Hospitality, Inc.
SUMMARY: City Manager recommending City Council adopt the attached
resolution approving the attached First Amendment to
Development Agreement by and between the City of
Dubuque, Iowa and Kinseth Hospitality Company, Inc. for the
construction of two Marriott hotels in the Port of Dubuque.
RESOLUTION Approving The First Amendment To
Development Agreement By And Between The City Of
Dubuque, Iowa And Kinseth Hospitality Company, Inc.
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo
3. 1 st Amendment
4. Resolution of Approval
Page 374 of 386
THE CITY OF
Dubuque
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Masterpiece on the Mississippi
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2017202019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: First Amendment to Development Agreement with Kinseth Hospitality
Company, Inc.
DATE: April 2, 2025
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution approving the attached First Amendment to Development
Agreement by and between the City of Dubuque, Iowa and Kinseth Hospitality
Company, Inc. for the construction of two Marriott hotels in the Port of Dubuque.
The Development Agreement provided for February 1, 2025, closing. Due to unforeseen
difficulties in the lending environment, the Developer has requested that the closing, as
well as all other milestones in the Development Agreement, be delayed by six months.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Page 375 of 386
Dubuque Economic Development
Department
THE CITY OF 1300 (wain street
All•Ameria10V Dubuque, Iowa 52001-4763
UB E I k"I""`"I""q Office (563) 589-4393
1 I I TTY (563) 690-6678
I® http://www.cityofdubuque.org
2007-2012*2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill Connors, Economic Development Director
SUBJECT: First Amendment to Development Agreement with Kinseth Hospitality
Company, Inc.
DATE: March 27, 2025
INTRODUCTION
This memorandum is a request for the City Council to adopt the attached resolution
approving a First Amendment to Development Agreement by and between the City of
Dubuque, Iowa and Kinseth Hospitality Company, Inc.
:j_Tej:(r]:lomk,Ic'
On September 16, 2024, the City of Dubuque entered into a Development Agreement with
Kinseth Hospitality Company, Inc. for the development of two hotels in the Port of Dubuque
— a Courtyard by Marriott or AC Marriott Hotel and a Residence Inn by Marriott.
DISCUSSION
The Development Agreement provided for February 1, 2025 closing. Due to unforeseen
difficulties in the lending environment, the Developer has requested that the closing, as well
as all other milestones in the Development Agreement, be delayed by six months.
RECOMMENDATION
I recommend the City Council adopt the attached resolution approving the attached First
Amendment to Development Agreement by and between the City of Dubuque, Iowa and
Kinseth Hospitality Company, Inc. for the construction of two Marriott hotels in the Port of
Dubuque.
Page 376 of 386
FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
KINSETH HOSPITALITY COMPANY, INC.
This First Amendment to Development Agreement (the First Amendment), dated
for reference purposes the day of ;' , 2025, is made and entered by and
between the CITY OF DUBUQUE, IOWA, a municipality (City) and Kinseth Hospitality
Company, Inc., an Iowa corporation with its principal place of business in Iowa
(Developer). (City and Developer are hereinafter sometimes collectively referred to as the
"parties").
WHEREAS, City and Developer entered into that certain Development Agreement
dated September 16, 2024 (the Agreement) with respect to the matters specified therein;
and,
WHEREAS, the parties desire to modify the Agreement as hereinafter provided.
NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the receipt and sufficiency of which are acknowledged by the parties, the parties agree
as follows:
1. Section 1.5 of the Development Agreement is hereby amended to read as
follows:
1.5 Closing. The closing shall take place on the Closing Date which shall be on or
before the 1 st day of August, 2025, or such other date as the parties shall agree in writing
but in no event shall the Closing Date be later than the 151h day of August, 2025 without
written consent of City in its sole discretion. Consummation of the Closing shall be
deemed an agreement of the parties to this Agreement that the conditions of closing shall
have been satisfied or waived.
2. Section 4.2 of the Development Agreement is hereby amended to read as
follows:
4.2 At the City's option, City may construct access roads built to City standards to the
12.65-acre site, along the north and west borders of the Property. City shall pay the
difference between proposed drive lanes built to Marriott standards and roads built to City
standards. The parking stalls remain the property of the Developer.
3. Section 4.5 of the Development Agreement is hereby amended to read as
follows:
03282025bal
4.5 Timing of Improvements. Developer hereby agrees that construction of the
Minimum Improvements on the Property shall have been commenced by January 1,
2026, and shall be substantially completed by June 30, 2027. For each month or part of
a month after June 30, 2027 if the certificate of occupancy has not been issued, Developer
shall pay to City $50,000 on the first day of each month until the certificate of occupancy
is issued. The time frames for the performance of these obligations shall be subject to
suspension and/or extension due to a Force Majeure Event in accordance with the terms
of Section 9.3 of this Agreement.
4. Section 5.1(1)(b) of the Development Agreement is hereby amended to
read as follows:
(b) To fund the Developer Economic Development Grants, City shall
certify to the County prior to December 1 of each year, commencing
December 1, 2027, its request for the available Developer Tax Increments
resulting from the assessments imposed by the County as of January 1 of
that year, to be collected by City as taxes are paid during the following fiscal
year and which shall thereafter be disbursed to Developer on November 1
and May 1 of that fiscal year. (Example: if City so certifies by December 1,
2027, the Developer Economic Development Grants in respect thereof
would be determined on November 1, 2028, and May 1, 2029.) If
construction of the Minimum Improvements is delayed, the first certification
to the County shall be on December 1 immediately following the completion.
The twenty (20) semi-annual payments shall begin on November 1 of the
second subsequent year.
5. Section 5.3 of the Development Agreement is hereby amended to read as
follows:
5.3 Restrictive Covenant. At Closing, City shall record a restrictive covenant, in form
and substance approved by Developer, prohibiting the City from granting a building permit
for the development of any additional hotel/hospitality facilities (excluding bed and
breakfast establishments) in the 12.65 acre site shown on Exhibit I by any person other
than Developer or a Developer affiliate, which covenant shall be binding until the issuance
of the certificate of occupancy for the Marriott hotel or June 30, 2027, whichever first
occurs.
6. All other terms of the Development Agreement, as amended, shall remain
in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment
effective as of the last date below -mentioned.
CITY OF DUBUQUE, IOWA KINSETH HOSPITALITY COMPANY,
INC.
By:
Brad M. C nagh, Mayor
ATTEST:
Adrienne N. Breitfelder, City Clerk
By:
Ben Kinseth, Vice President
Prepared by: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4213
Return to: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4213
RESOLUTION NO. 120-25
APROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF DUBUQUE, IOWA AND KINSETH HOSPITALITY
COMPANY, INC.
WHEREAS, the City of Dubuque and Kinseth Hospitality Company, Inc., an Iowa
corporation with its principal place of business in Iowa (Developer) entered into that
certain Development Agreement dated September 16, 2024 with respect to the matters
specified therein; and
WHEREAS, the parties desire to further modify the Development Agreement as
set out in the First Amendment to Development Agreement attached hereto; and
WHEREAS, the City Council finds that it is in the interests of the City of Dubuque
to approve the First Amendment to Development Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF DUBUQUE,
IOWA AS FOLLOWS:
Section 1. The First Amendment to Development Agreement is hereby approved.
Passed, approved and adopted this 7th day of April, 2025.
Brad M. Cavan , Mayor
Attest:
Adrienne N. Breitfelder, City Clerk