8 14 24 City Council Proceedings Official SpecialCITY OF DUBUQUE, IOWA
CITY COUNCIL PROCEEDINGS
SPECIAL SESSION
OFFICIAL
The Dubuque City Council met in special session at 5:00 p.m. on August 14, 2024, in
the second-floor Council Chambers of the Historic Federal Building, 350 W. 6th Street.
Present: Mayor Cavanagh; Council Members Farber, Jones, Resnick, Roussell,
Sprank, Wethal; City Manager Van Milligen, City Attorney Brumwell.
Mayor Cavanagh read the call and stated this is a special session of the City Council
called for the purpose of setting a public hearing for a development agreement with Kin-
seth Hospitality Company, Inc.
ITEMS SET FOR PUBLIC HEARING
Motion by Jones to receive and file the documents, adopt the resolution, and set the
public hearing as indicated. Seconded by Farber. Motion carried 7-0.
1. Setting Public Hearing for a Proposed Development Agreement between the City of
Dubuque, Iowa and Kinseth Hospitality Company, Inc.: Upon motion the documents were
received and filed and Resolution No. 252-24 (1) Approving the minimum requirements,
competitive criteria, and offering procedures for the development and the sale of certain
real property and improvements in the Greater Downtown Urban Renewal District; (2)
determining that the offer to purchase submitted by Kinseth Hospitality Company, Inc.
satisfies the offering requirements with respect to the real property and improvements
and declaring the intent of the City Council to approve the sale to Kinseth Hospitality
Company, Inc.in the event that no competing proposals are submitted; and (3) soliciti ng
competing proposals was adopted setting a public hearing for a meeting to commence at
6:30 p.m. on September 16, 2024 in the Historic Federal Building.
RESOLUTION NO. 252-24
RESOLUTION (1) APPROVING THE MINIMUM REQUIREMENTS, COMPETITIVE CRI-
TERIA, AND OFFERING PROCEDURES FOR THE DEVELOPMENT AND THE SALE
OF CERTAIN REAL PROPERTY AND IMPROVEMENTS IN THE GREATER DOWN-
TOWN URBAN RENEWAL DISTRICT; (2) DETERMINING THAT THE OFFER TO PUR-
CHASE SUBMITTED BY KINSETH HOSPITALITY COMPANY, INC. SATISFIES THE
OFFERING REQUIREMENTS WITH RESPECT TO THE REAL PROPERTY AND IM-
PROVEMENTS AND DECLARING THE INTENT OF THE CITY COUNCIL TO AP-
PROVE THE SALE TO KINSETH HOSPITALITY COMPANY, INC.IN THE EVENT
THAT NO COMPETING PROPOSALS ARE SUBMITTED; AND (3) SOLICITING COM-
PETING PROPOSALS
Whereas, the City Council of Dubuque, Iowa, did on December 18, 2023, adopt an
Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal
District (“the Plan”) for the Urban Renewal Area described therein; and
Whereas, the Plan provides, among other things, for the disposition of properties for
private development purposes as a proposed economic development action; and
Whereas, Kinseth Hospitality Company, Inc. (“Developer”) has submitted to the City a
proposal in the form of an offer to purchase (the “Development Agreement”) for the pur-
chase of certain City-owned real property hereinafter described (“the Property”), which
Development Agreement proposes the Developer will undertake the construction of a
building located immediately north of Ice Harbor Drive and along East 5th Street as de-
scribed therein, which Property is the real estate consisting of approximately 2 acres
shown on Exhibit A, and which Development Agreement requests that this Property be
made available for sale as rapidly as possible; and
Whereas, in order to establish reasonably competitive bidding procedures for the dis-
position of the Property in accordance with the statutory requirements of Iowa Code
Chapter 403, specifically, Section 403.8, and to assure that the City extends a full and fair
opportunity to all developers interested in submitting a proposal, a summary of submis-
sion requirements and minimum requirements and competitive criteria for the Property
offering is included herein; and
Whereas, said Developer has signed a Development Agreement with the City, cur-
rently on file at the Office of the City Clerk; and
Whereas, to recognize both the firm proposal for sale of the Property and improve-
ments already received by the City in the form of the Development Agreement, as de-
scribed above, and to give full and fair opportunity to other developers interested in sub-
mitting a proposal for the sale and development of the Property, this Council should by
this Resolution:
1) Set the fair market value of the Property for uses in accordance with the Plan;
2) Approve the minimum requirements and competitive criteria included herein;
3) Approve as to form the Development Agreement;
4) Set a date for receipt of competing proposals and the opening thereof;
5) Declare that the proposal submitted by Developer satisfies the minimum require-
ments of the offering, and that in the event no other qualified proposal is timely
submitted, that the City Council intends to accept such proposal and authorize the
City Manager to sign the Development Agreement;
6) Approve and direct publication of a notice to advise any other person of the oppor-
tunity to compete for sale of the Property on the terms and conditions set forth
herein; and
7) Declare that in the event another qualified proposal is timely submitted and ac-
cepted, another and future notice will be published on the intent of the City to enter
into the resulting contract, as required by law; and
Whereas, the City Council believes it is in the best interest of the City and the Plan to
act as expeditiously as possible to sell the Property as set forth herein.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the Property shown on Exhibit A attached hereto, shall be offered for
sale in accordance with the terms and conditions contained in this Resolution.
Section 2. That it is hereby determined that in order to qualify for consideration for
selection, any person must submit a proposal which meets these minimum requirements:
1) Contains an agreement to purchase the Property, shown on Exhibit A, at not less
than fair market value, which for the purposes of this resolution is hereby deter-
mined to be $800,000;
2) States the number of hotel rooms that will be created in the proposal’s project;
3) Sets out or provides to the satisfaction of the City Council the experience of the
principals and key staff who are directly engaged in the performance of contract
obligations in carrying out projects of similar scale and character; and
4) Meets, at a minimum, the terms and conditions of the Development Agreement
submitted by the Developer including an agreement to invest approximately
$30,000,000 to complete construction of the 160 hotel rooms in the building.
Section 3. That the Development Agreement by and between the City and the Devel-
oper be and is hereby approved as to form for the purposes hereinafter stated.
Section 4. That for the purpose of defining the offering of the Property for sale, said
Development Agreement shall be deemed to be illustrative of the terms acceptable to the
City with respect to:
1) Timely completion of the construction project;
2) Construction of minimum improvements;
3) Developer and City obligations; and
4) General terms and conditions.
Section 5. That the Development Agreement submitted by the Developer satisfies the
requirements of this offering and, in the event that no other qualified proposals are timely
submitted, that the City Council intends to accept and approve the Development Agree-
ment.
Section 6. That it is hereby determined that the Developer possesses the qualifications,
financial resources and legal ability necessary to purchase the Property shown on Exhibit
A and to construct, manage and operate the site in the manner proposed by this offering
in accordance with the Plan.
Section 7. That the City Clerk shall receive and retain for public examination the at-
tached Development Agreement submitted by the Developer and, in the event no other
qualified proposals are timely submitted, shall resubmit the Development Agreement to
the City Council for final approval and execution upon expiration of the notice hereinafter
prescribed.
Section 8. That the action of the City Council be considered to be and does hereby
constitute notice to all concerned of the intention of this Council, in the event that no other
qualified proposals are timely submitted, to accept the proposal of the Developer to pur-
chase the Property shown on Exhibit A and to approve the Development Agreement by
and between City and Developer.
Section 9. That the official notice of this offering and of the intent of the City, in the
event no other qualified proposals are timely submitted, to approve the Development
Agreement, shall be a true copy of this Resolution, but without the attachments referred
to herein.
Section 10. That the City Clerk is authorized and directed to secure immediate publi-
cation of said official notice in the Telegraph Herald, a newspaper having a general cir-
culation in the community, by publication of the text of this Resolution on or before the
15th day of August 2024.
Section 11. That written proposals for the sale of the Property shown on Exhibit A will
be received by the City Clerk at or before 10:00 a.m., September 16, 2024, in the Office
of the City Clerk, located on the first floor at City Hall, 50 West 13th Street, Dubuque,
Iowa 52001. Each proposal will be opened at the hour of 10:00 a.m. in City Hall, Dubuque,
Iowa on September 16, 2024. Said proposals will then be presented to the City Council
at 5:00 p.m., (same date as opening), 2024, at a meeting to be held in the City Council
Chambers, Historic Federal Building at 350 West 6th Street, Dubuque, Iowa.
Section 12. That the method of offering the Property for sale as set forth herein is in
substantial conformance with the provisions of Iowa Code Section 403.8, requiring rea-
sonable competitive bidding procedures as are hereby prescribed and “fair value.”
Section 13. That the required documents for the submission of a proposal shall be in
substantial conformity with the provisions of this Resolution.
Section 14. That the City Clerk is hereby nominated and appointed as the agent of the
City of Dubuque, Iowa to receive proposals for the sale of the Property on that date and
according to the procedure hereinabove specified for receipt of such proposals and to
proceed at such time to formally acknowledge receipt of each of such proposal by noting
the receipt of same in the Minutes of the Council; that the City Manager is hereby author-
ized and directed to make preliminary analysis of each such proposal for c ompliance with
the minimum requirements established by this Council hereinabove. For each proposal
that satisfies these requirements, the City Council shall judge the strength of the proposal
by the competitive criteria established hereinabove. The City Council shall then make the
final evaluation and selection of the proposals.
Section 15. If, and only if, competing proposals are received and determined by the
Council to meet the minimum requirements described herein, the Developer shall be al-
lowed to amend its proposal in response thereto and to deliver same to the City Manager,
by no later than a date determined by the City Council. In such event, the Council shall
schedule a subsequent meeting to be held by the City Manager at which there shall be a
bid-off conducted by the City Manager. During such bid-off, each competing bidder shall
bid against the other, starting with the second proposal received and continuing until such
time as each bidder shall decline to improve its proposal to acquire and redevelop the
Property shown on Exhibit A in response to the last bid of the other bidder or bidders. The
period of time to be allowed for such bid-off shall be determined by the City Manager. The
rules of such bid-off shall be as determined by the City Manager at or before such bid-off
period and shall be absolute.
Section 16. That in the event another qualified proposal is timely submitted and ac-
cepted by the City, another and further notice shall be published of the intent of the City
of Dubuque, Iowa, to enter into the resulting agreement, as required by law.
Passed, approved and adopted this 14th day of August 2024.
Brad M. Cavanagh, Mayor
Attest: Adrienne N. Breitfelder, City Clerk
There being no further business, Mayor Cavanagh declared the meeting adjourned at
5:01 p.m.
/s/Adrienne N. Breitfelder, CMC, City Clerk