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Setting Public Hearing for a Proposed Second Amendment to Develop Agreement with Kinseth Hospitality Company, Inc. Copyrighted June 15, 2026 City of Dubuque ITEMS SET FOR PUBLIC HEARING # 5. City Council ITEM TITLE: Setting Public Hearing for a Proposed Second Amendment to Development Agreement with Kinseth Hospitality Company, I nc. SUMMARY: City Manager recommending setting a public hearing for July 6, 2026, to consider the proposed Second Amendment to the Development Agreement for development of a SpringHill Suites by Marriott hotel in the Port of Dubuque. RESOLUTION Fixing the date for a Public Hearing of the City Council of the City of Dubuque, lowa on a Second Amendment to Development Agreement by and between the City of Dubuque, lowa and Kinseth Hospitality Company, Inc., Including the Proposed Issuance of Urban Renewal Tax Increment Revenue Obligations Relating thereto, and Providing for the Publication of Notice Thereof SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for DISPOSITION: July 6, 2026 ATTAC H M ENTS: 1. MVM Memo Setting Public Hearing for a Proposed Second Amendment to DA with Kinseth Hospitality Company, Inc 2. Staff Memo 3. Second Amendment Kinseth DA Signed 6-12-26 4. Resolution of Approval 5. Notice of Hearing 6. Public Input - Kinseth Public Hearing Page 1134 of 1594 Dubuque THE CITY QF � All•li�eriea Ciry DLT B E ��, . � �� � � MaSt� Z�C� alZ t�Q Mt55ZSSZ Z zoa�•zoiz•zai3 �' pp zai�*zaig TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Setting Public Hearing for a Proposed Second Amendment to Development Agreement By and Between the City of Dubuque, lowa and Kinseth Hospitality Company, Inc. DATE: June 11, 2026 Economic Development Director Jill Connors is recommending City Council set a public hearing on the proposed Second Amendment to Development Agreement by and between the City of Dubuque, lowa and Kinseth Hospitality Company, Inc. 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. Due to unforeseen difficulties in the lending environment, the Developer requested that the closing, as well as all other milestones in the Development Agreement, be delayed by six months. This was authorized by the City Council in a First Amendment. Due to ongoing challenges in the lending environment, the Developer has recently proposed developing only one hotel — a SpringHill Suites by Marriott. City staff continue to recognize the need for additional hotel accommodations in the Port of Dubuque to support the operations of the Grand River Center, particularly for larger events and conferences that require a hotel within walking distance. New opportunities are also coming to the Dubuque hotel market with the development of the John and Alice Butler School of Osteopathic Medicine being built by the University of Dubuque just a few blocks away from this hotel site and the fact that beginning in 2027 the Field of Dreams anticipates creating a demand for over 71,000 additional hotel rooms a year in this market. The proposed Second Amendment facilitates construction of the hotel to help meet these needs. The proposed Second Amendment includes the following: • Developer will purchase approximately 1.25 acres of the City-owned 12.65-acre site at a price of$160,000 per acre (approximately $200,000 total), adjusted based on final platted acreage. Page 1135 of 1594 • Developer will construct an approximately 90-room SpringHill Suites by Marriott hotel with a total capital investment of about $18 million. • Construction must begin by September 1, 2026, and the project must be substantially completed by February 28, 2028. If a certificate of occupancy is not issued by May 1, 2028, Developer must pay the City $50,000 per month until issuance, unless delay is caused by City's unreasonable refusal to issue the certificate. • City and Developer will enter into a mutually agreeable parking agreement for use of the surFace lot immediately east of the hotel. • City will provide 12 years of tax increment financing in the form of 24 semi-annual payments funded solely by the incremental property taxes generated by the project. • City will record a restrictive covenant prohibiting issuance of building permits for any additional hotel/hospitality facilities (excluding B&Bs) on the 12.65-acre site by anyone other than the Developer or its affiliates until the hotel obtains a certificate of occupancy or until December 31, 2027, whichever occurs first. • City will grant Developer an option to purchase an additional approximately 1.25 acres north of the hotel site at $400,000 per acre. Developer will pay $10,000 at Closing for the first 12 months of the option period, and $1,000 per month thereafter until December 31, 2028 or until exercised. If exercised, the Developer must construct a Residence Inn by Marriott within 21 months, or pay $50,000 per month thereafter until a certificate of occupancy is issued. • City will construct stub streets, built to City standards, adjacent to the hotel site to serve the project and future development on the remaining acreage. I concur with the recommendation and respectfully request that the Mayor and City Council adopt the attached resolution setting a public hearing for July 6, 2026, to consider the proposed Second Amendment to the Development Agreement for development of a SpringHill Suites by Marriott hotel in the Port of Dubuque. � Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director 2 Page 1136 of 1594 Dubuque Economic Development Department THE CITY OF � 130o Main street All-America City Dubuque,lowa 52001-4763 U� � ""�x�,`�`��``���`�'" Office(563)589-4393 � � TTY(563)690-6678 � http://www.cityofdubuque.org 2007*2012�2013 Masterpiece on the Mississippi zoi�*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Jill Connors, Economic Development Director SUBJECT: Setting Public Hearing for a Proposed Second Amendment to Development Agreement By and Between the City of Dubuque, lowa and Kinseth Hospitality Company, Inc. DATE: June 5, 2026 INTRODUCTION This memo presents for City Council consideration a resolution that sets a public hearing on the proposed Second Amendment to Development Agreement by and between the City of Dubuque, lowa and Kinseth Hospitality Company, Inc. Due to continued challenges in the lending environment and a revised development approach by the Developer, a Second Amendment is proposed. BACKGROUND 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. Due to unforeseen difficulties in the lending environment, the Developer requested that the closing, as well as all other milestones in the Development Agreement, be delayed by six months. This was authorized by the City Council in a First Amendment. DISCUSSION Due to ongoing challenges in the lending environment, the Developerhas recently proposed developing only one hotel —a SpringHill Suites by Marriott. City staff continue to recognize the need for additional hotel accommodations in the Port of Dubuque to support the operations of the Grand River Center, particularly for larger events and conferences that Page 1137 of 1594 require a hotel within walking distance. The proposed Second Amendment facilitates construction of the hotel to help meet this need. The proposed Second Amendment includes the following: • Developer will purchase approximately 1.25 acres of the City-owned 12.65-acre site at a price of $160,000 per acre (approximately $200,000 total), adjusted based on final platted acreage. • Developer will construct an approximately 90-room SpringHill Suites by Marriott hotel with a total capital investment of about $18 million. • Construction must begin by September 1, 2026, and the project must be substantially completed by February 28, 2028. If a certificate of occupancy is not issued by May 1, 2028, Developer must pay the City $50,000 per month until issuance, unless delay is caused by City's unreasonable refusal to issue the certificate. • City and Developer will enter into a mutually agreeable parking agreement for use of the surface lot immediately east of the hotel. • City will provide 12 years of tax increment financing in the form of 24 semi-annual payments funded solely by the incremental property taxes generated by the project. • City will record a restrictive covenant prohibiting issuance of building permits for any additional hotel/hospitality facilities (excluding B&Bs) on the 12.65-acre site by anyone other than the Developer or its affiliates until the hotel obtains a certificate of occupancy or until December 31, 2027, whichever occurs first. • City will grant Developer an option to purchase an additional approximately 1.25 acres north of the hotel site at $400,000 per acre. Developer will pay $10,000 at Closing for the first 12 months of the option period, and $1,000 per month thereafter until December 31, 2028 or until exercised. If exercised, the Developer must construct a Residence Inn by Marriott within 21 months, or pay $50,000 per month thereafter until a certificate of occupancy is issued. • City will construct stub streets, built to City standards, adjacent to the hotel site to serve the project and future development on the remaining acreage. RECOMMENDATION I recommend the City Council adopt the attached resolution setting a public hearing for July 6, 2026, to consider the proposed Second Amendment to the Development Agreement for development of a SpringHill Suites by Marriott hotel in the Port of Dubuque. 2 Page 1138 of 1594 SECOND AMENDMENT TO DEVELOPMENT�GREEME�T BY AND BETiIUEEN THE CITY OF DUBUQUE, IOV1tA AND KINSETH HOSPITALITY COMPANY, INC. This Second Amendment to Development Agreement (the Second Amendment), dated for reference purposes the day of , 2026, is made and entered by and between the CITY OF DUBUQUE, IOWA, a municipality (City), and Kinseth Nospitality Company, Inc., an lowa corporation with its principal place of business in lowa (Developer). (City and Developer are hereinafter sometimes collectively referred to as the 'parties'}. VUHEREA►S, City and Developer entered into that certain Development Agreement dated September 16, 2024 (the Agreement), as amended by the First Amendment dated March 28, 2025; and 11UHEREAS, the parties desire to further 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, as amended, is hereby amended to read as follows: 1.5 Closinq. The closing shall take place on the Closing Date which shall be on or before August 1, 2026, or such other date as the parties shall agree in writing, but in no event shall the Clasing Date be later than August 15, 2026 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 2 of the DevelopmentAgreement, as amended, is hereby amended to read as follows: SECTION 2. CONVEYANCE OF PROPERTY TO DEVELOPER; 06052026ba1 Page 1139 of 1594 PURCHASE PRICE OPTION. 2.1 Purchase Price. Subject to the terms and conditions herein, the purchase price for the Property (the "Property Purchase Price") shall be the following: $160,000/acre for approximately 1.25 acres shown on Exhibit N (the "Property") for a total Property Purchase Price of approximately$240,000. The actual Property Purchase Price shall be adjusted based on the acreage of the Property as shown on the Plat as defined in Section 1.3(6) of this Agreement. 2.2 Option At closing, City shall grant Developer an option, in form and substance appraved by City and Developer, in consideration for a non-refundable $10,000 paid to City at Closing for the first 12 months of Option Period, and an additional non- refundable $1,000 every month until the Option is exercised or terminated by Developer, granting Developer the option to purchase (the "Option") up to an additional approximately 1.25 acre adjacent to and immediately north of the Properky (the "Option Property"), at a purchase price of $400,000/acre, which option shall remain in effect until December 31, 2Q28 (the "Option Period"), and which option or memorandum thereof shall be recorded at closing (the "Option"). Developer may exercise the Option at any time during the Option Period upon written notice to City, provided at the time of exercise and closing there exists no uncured material breach of this Agreement by Develaper. If Developer timely exercises the Option, Developer and City shall negotiate and enter into an Amendment to this Development Agreement containing similar terms and canditions as this Agreement providing for Developer to construct an approximately 90-room Residence Inn by Marriott, provided that such Residence Inn by Marriott shall be substantially completed in not more than twenty-one (21) months after the exercise of the Option. For each month or part of a month after the 21 months, if the certificate of occupancy has not been issued, which issuance was not unreasonably withheld, the failure to obtain a certificate of occupancy shall not be considered an Event of Default, if Developer shall pay to City $50,000 on the first day of each month until the certificate of occupancy is issued. The hotel shall be maintained as a Residence Inn by Marriott hotel during the Term. 3. Section 4.1 of the Development Agreement, as amended, is hereby amended to read as follows: Page 1140 of 1594 4.1 Reguired Minirnum Improvements. Developer shall make a total capitai investment of approximately $18,OOO,Q00 in land acquisition, design, building construction, equipment, furniture and fixtures, and carrying costs to construct an approximately 90-room SpringHill Suites by Marriott hotel on the Property (the Minimum Improvements). The hotel shall be maintained as a SpringHill Suites hotel during the Term, with no more than 10 extended stay rooms as shown on Exhibit M (Floor Plans). 4. Section 4.5 of the Develapment Agreement, as amended, is hereby amended to read as follows: 4.5 Timin_ oq f Improvements. Developer hereby agrees that construction of the Minimum Improvements on the Property shall have commenced by September 1, 2026, and shall be substantially completed by February 28, 2028. For each month or part of a manth afterApril 30, 2028, if the certificate of occupancy has not been issued, unless the City has unreasonably refused to issue the certificate of occupancy, the failure to obtain a certificate of occupancy shall not be considered an Event of Default if Developer pays to City$50,000 on the first day of each month, beginning May 1, 2028, 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. 5. Section 5.1(1) of the Development Agreement, as amended, is hereby amended to read as follows: 5.1 Economic Development Grants. (1) Developer Economic Development Grants (a) For and in consideration of Developer's obligations hereunder, and in furtherance of the goals and objectives of the Urban Renewal Plan for the Project Area and the Urban Renewal �aw, City agrees, subject to Developer being and remaining in campliance with the terms of this Agreement, to make twenty (24) semi-annual payments (such payments being referred to collectively as the Developer Economic Development Grants) to Developer as follows: November 1, 2030 May 1, 2�31 November 1, 2031 May 1, 2032 Page 1141 of 1594 November 1, 2032 May 1, 2033 November 1, 2033 May 1, 2034 November 1, 2034 May 1, 2035 November 1, 2035 May 1, 2036 November 1, 2036 May 1, 2Q37 Navember 1, 2037 May 1, 2038 November 1, 2038 May 1, 2039 November 1, 2039 May 1, 2040 November 1, 2040 May 1, 2041 Navember 1, 2041 May 1, 2042 Pursuant to lowa Code Section 403.9 of the Urban Renewal Law, in amounts equal to the actual amount of tax increment revenues collected by City under lowa Code Section 403.19 (without regard to any averaging that may otherwise be utilized under lowa Code Sectian 403.19 and excluding any interest that may accrue thereon prior to payment to Developer)during the preceding six (6) month period in respect of the Property and Minimum Improvements constructed by Developer (the Developer Tax Increments). City and Developer agree that for purposes of this Section 5.1(1), the assessed value of the Property as of January 1, 2026 is approximately $312,000. The actual assessed value of the Property shall be adjusted based on the acreage of the Property, at $312,000/acre, as shown on the Plat as defined in Section 1.3(6) of this Agreement. Developer recognizes and agrees that the Economic Development Grants shall be paid solely and only from the incremental taxes collected by City in respect to the Property and any improvements thereon, which does not include property taxes collected for the payment of bonds and interest of each taxing district, and taxes for the regular and voter-approved physical plant and equipment levy, instructional support levy, and any other portion required to be excluded by lowa law, and thus such incremental taxes will not include all amounts paid by Developer as regular property taxes. (b) To fund the Developer Economic Development Grants, City shall certify to the County prior to December 1 of each year, commencing December 1, 2028, its request for the available Developer Tax Increments resulting fram 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, 2028, the Developer Economic Development Grants in respect thereof would be determined on November 1, 2029, and May 1, 2030.) If construction of the Minimum Improvements is delayed, the first certification Page 1142 of 1594 to the County shaii be on December 1 immediately following the completion. (c}The Developer Economic Development Grants shall be payable from and secured solely and only by the Developer Tax Increments paid to City that, upon receipt, shall be deposited and held in a special account created for such purpose and designated as the Kinseth TIF Account of City. City hereby covenants and agrees to maintain its TIF ordinance in force during the term and to apply the incremental taxes collected in respect of the Properky and Minimum Improvements and allocated to the Kinseth TIF Account to pay the Developer Economic Development Grants, as and to the extent set forth in Section 5.1(1) hereof. The Developer Economic Development Grants shall not be payable in any manner by other tax increments revenues or by general taxation or from any other City funds. City makes no representation with respect to the amounts that may be paid to Developer as the Developer Economic Development Grants in any one year and under no circumstances shall City in any manner be liable to Develaper so long as City timely applies the Developer Tax Increments actually collected and held in the Kinseth TIF Account (regardless of the amounts thereof) to the payment of the Developer Economic Development Grants to Developer as and to the extent described in this Section. 6. Section 5.3 of the Development Agreement, as amended, 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 Minimum Improvements on the Property or December 31, 2027, whichever first occurs. 7. Section 5 of the Development Agreement, as amended, is amended by adding the following new Section 5.4. 5.4 Stub Streets. City shall construct the new Stub Streets as conceptually shown on Exhibit L, according to plans and specifications determined by City. 8. Section 9 of the Development Agreement, as amended, is hereby amended to add the following subsection: Page 1143 of 1594 9.7 Legai Compiiance. Developer is responsibie far compiiance with all applicable laws, statutes, rules, regulations, and ordinances which may apply to the perFormance of Developer's obligations under this Agreement, including but not limited to the laws outlined in Exhibit K, and hereby represents and warrants that Developer is in compliance with the same as of the Closing Date and further represents that during the Term Developer will remain in compliance. Developer shall require all contractors and subcontractors providing services under this Agreement shall also certify compliance with this Section. 9. Exhibit G to the Development Agreement, as amended, is hereby replaced in its entirety with Exhibit G attached here to, showing a conceptual site plan, which shall be subject to review and final approval of the City. . 10. The List of Exhibits shall now reflect the following: EXHIBIT A Urban Renewal Plan EXHIBIT B CityAttorney Certificate EXHIBIT C Opinion of Developer Counsel EXHIBIT D City Certificate EXHIBIT E Memorandum of Development Agreement EXHIBIT F Parking Property EXHIBIT G Site Plan EXHIBIT H Access Agreement EXHIBIT 1 12.65 Acre Site EXHIBIT J Special Warranty Deed EXHIBIT K �egal Campliance EXHIBIT L Stub Streets EXHIBIT M Floar Plans EXHIBIT N Land Sale 11. All other terms of the Development Agreement, as amended, shall remain in full force and effect. IN WITNESS WHEREOF, City has caused this Agreement to be duly executed in its name and behalf by its Mayor and attested to by its City Clerk and Develaper has caused this Agreement to be duly executed. CITY C}F DUBUQUE, IOW�i KINSETH HOSPITALITY COMPANY, INC. Page 1144 of 1594 By: By: � /t-1,L-�� ��Q� Brad M. Cavanagh, Mayor Its v -� Attest: By: Adrienne N. BreitFeider, City Clerk Page 1145 of 1594 EXHIBIT G SITE PLAfV Page 1146 of 1594 - �\ , . ,,��, • �a . • Qo � o� • ��� � _. f� _ ., .. , , _ __��__..-«`W_.»_.,r____.._.._... _,._,�.--___.,. + ` '! � . �� � _ _-� -- � , .. ,:, , ._.. _ .. ^.--- - ---- --- - -�-�=�--- i ,T---�—-—-— � '�- __ ` - S H1S 3 ,, - -_.-. • ; .,�.._...�-�_ ..._.. p Y�—yti�.�., .+.., . _ � .""' ^[�'. +}�y ., . . ' —._ ..�..�.v'.�-.+-, . ...... ..-._.. . .,\. ..�� ., .�..j ' "_ _.._. . ...,�. ��' . . . _._. .-. ..�t . � __ , . ... ... . . , �� < .. � ... .. .. ,- '....� , _'......_ .' f v.-_ —_.,_ .._ • _ .. . ; I fi � ` 1 �' �I t ... �-. _ . . - I �� �' \ . � � � , � . �f l i I i .�:� I I � ;;i R i�� ; I � / � � ' ' � � I . �� � / � � � � , , __ . � ' � I A J Q � � � I � z, -- � o ,� � , _;: . _ . �_._ � � � �, ,A� II � i � � - ;.� � � ,� ?� , � A� ;1 � i , 2 _— , i_ � �_ /� � i , -- � i �� .- -_ - �� 1 � _ _._i � ' I � �� i . � . —_ _�� I N '_ . . _ ��-- '� � � I � � C . - ;� j , I + I - � --- - � i � _ � �� � � I �=� ��``�� 1 t� `� � I� � , _� ` 1 - ; _ � ;� � � _ __ � � _ , 1 .. _. .� ........ - � �b'_...b�, . �`I. ��� '__ � . � �• __..._ .J;..� '.....� 1 = �..._._ � , . ..._.. _..____—_—_. .,. F'� r __ . ,_. '��4_� �� . _....� _ _ ;` .__._�._..� �oA�� � � � � . �,p�o����/ � _ _..._;� � T��c��Qy � _- - I �, _ �� � ti - �-- - ._, __ - ��,. ..- .. .., , :. _ .._.. .-� UESlH6 .._..-r . _ _. � LAVOUT PLAtJ ..... �x/ppp„Cccc lotsa. • . . p',�'� SPRINGNILL SUITES BY MARR OT �'; . . _ .`�,-,:�� . . . ..r-:�, "_` -' 0 PQRT OP OUBUOUc ' -. ...�,. . . ' -:: : ..... ....� . -_.. Page 1147 of 1594 EXHIBIT K �EGAL COMP�IANCE Page 1148 of 1594 a) Title VI of the Civil Rights Act of 1964(42 U.S.C. §2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21; b) The Uniform Retocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. §4601), (prohibits unfair treatment of persons disptaced or whose praperty has been acquired because of Federal or Federal-aid programs and projects); c) Federal-Aid Highway Act of 1973, (23 U.S.C. §324 et seq.), (prohibits discrimination on the basis of sex); d) Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. §794 et seq.), as amended, (prohibits discrimination an the basis of disability); and 49 CFR Part 27; e} The Age Discrimination Act of 1975, as amended, (42 U.S.C. §6101 et seq), (prohibits discrimination on the basis of age); f) Airport and Airway Improvement Act of 1982, (49 U.S.C. §471, Section 47123), as amended, (prohibits discrimination based on raca, creed, color, national origin, or sex); g} The Civil Rights Restoration Act of 1987, (P� 10d-209); (broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964 to include that entities that receive federal funding must comptywith civil rights legislation, inctuding the Civil Rights Act of 1964,the Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973, in alt operations, notjust in the program or activity receiving federat funding); h) Titles II and III of the Americans with Disabilities Act,which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. �§ 12131 - 12189j as implemented by Department of Transportation regulations at 49 C.F.R. Parts 37 and 38; i} The FederalAviation Administration's Non-discrimination statute (49 U.S.C. §47123) (prohibits discrimination on the basis of race, color, national arigin, and sex}; j) Section 1557of the Affordable Care Act(prohibits discrimination an the basis of national origin); Page 1149 of 1594 k) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. � 1681 et seq.) (prohibits discrimination because of sex in education pragrams or activities); L) Drug Abuse Office and Treatment Act of 1972, as amended {21 U.S.C. � 1101 et seq.); and m) Alcohol Abuse and Alcoholism Prevention,Treatment and Rehabilitation Act of 1970, as amended (42 U.S.C. �4541, et seq.). Page 1150 of 1594 EXHIBIT L STUB STREETS Page 1151 of 1594 „ _ _ _ _ __�_ _._�.-- ------ �- --- _ - -- --. � _. . , ��� � �� � �• � � ' �.�'� .. . �v \ ” \ I �� � `! .� °- � ,} f y i � �„ �O '� e�, 1 t, �-,, � Z . I � (^. 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I � .... . .. � '. . ,I ._ .. ..'_ '_� � i' '__.._.. .._.. -.� .__'_ `__'__'__-__.'"._ _ Page 1152 of 1594 EXHIBIT PVi FLOOR P�IVS Page 1153 of 1594 . -- ---=-------- -°_ t--- y--- �— .•__ _______'__J_`_';}_ __.___ � .� __ � �'r , � I �^ +�I�i� I ' I .�._.�1���, "I � � � i ,_ ;_ _ __� � _3 ' ----- � �. t, � . • � �r, �� i �� �.;� � � � � 4' i � �_, ; i �e a,,�z v - ir ' b...� , - i ( '. �a �:� I �. � �� : I i� `� . '� . I _f� �K j7j�., r �i— A ��y� C.k �� ' � � � _7 �S�?` �� � s� .���� >�{�i� �'�� � � � � k � � A�� e•��� __ � I � ,x�l �_� o I � �� ��._� I i• s� �/ �"�::_`�.;�� � � � '_ tr� � � ' �"� �y y p ' , i . ���_. r- � f . . ' � �y ::� y\ _-� ' i� � � p ,i�' ` �� f �� �d �� � � � � � '� �� � '� -� � i ' _ ;` -' � ��� �,;,���� . , _,,a� � , � ..� � ,r�3 . i � ��-. � � i � i � t� �.-� � c�p i ;� - I! 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',�� -_._ ��__ __ _.__;� ?' � 3� �� �=g 2v� � � 3 � � , _ ; �� SPRInGHILL St11TES .�- �� R � Ei'� MA.RRIOTT a � :' � � > i � � '.xxx E Sth Street 'P Z � � ��Cdy of Dubuque,Dubuque County �Y,p �i .Y � � � �° � ��g I �Z�Y-/l �_ Page 1157 of 1594 EXHIBIT N L�►P!D SALE Page 1158 of 1594 s s,� * �,.�t ` . , , `=: , � '`Y �; -jt� ,� •.d4� ,y _ ' ,�,_� .. . �: `a � .„5 � ..y. �;;� cy.._J 3���w�;�"� �°s � � . � ' �.; r.. �,✓:.��Ls� ;s -�• � �' - - .,+� �,• ..;, � % h ti {��i.� � .T: i- rt::. 4 .t!� 4` � � `�� r �� - ? � w� �'• �� . 1.�.. . . -. .! ��. � � �.�.� ' .. .. �?:v S_��T. �,� •� .�i .�.. _. . . ' . . - _ �.-. .... . . . � .- -�'=i . . .-. �� �. :�. . � ~ '';��. �, � � `� � ?� � i � � / � ,' � �.� �'. '�n���:. � ' � �Jy �{,. �"T_^_ \."'y- ,..�`�- :�a Y: . �� � �„� • ,�,,, ` �. i �� �:� .. � . � � t . _ ��,��.., � � � �� - � ��� �` �' �� ` � � ��;. � ,. � � '� `� �\� �Srti "�'� � � '� '�' � � /,/f ��. ��~ ��. �� � / F� / � "I �� _ �G�NA�B�ft OR -" � �, r, � � � � _ � � `4 Q���- ,;,,,,,..�.- !� i , . . �.� ,, ' i • �� _ . : �`*,�:_' � � } Ar Afr �� ' %� � r� �' �*k � _ /' ' I ____�._._..� _ _�.. .. ._.�. � Page 1159 of 1594 Prepared by: Ian Hatch, Assistant Economic Development Director, 50 W. 13th Street, Dubuque IA 52001, 563 589- 4393Return to: Adrienne Breitfelder, City Clerk, 50 W. 13th Street, Dubuque IA 52001, 563 589-4121 RESOLUTION NO. 251-26 FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA ON A SECOND AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND KINSETH HOSPITALITY COMPANY, INC., INCLUDING THE PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT REVENUE OBLIGATIONS RELATING THERETO, AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF WHEREAS, the City of Dubuque, Iowa (City), and Kinseth Hospitality Company, Inc. (Developer) entered into a Development Agreement dated for reference purposes September 16, 2024, for the development of a hotel in the City of Dubuque, Iowa (the Property); and WHEREAS, City and Developer desire to amend the Development Agreement as set forth in the attached Second Amendment to Development Agreement; and WHEREAS, it is the determination of the City Council that approval of the Second Amendment to Development Agreement is in the public interest of the City of Dubuque; and WHEREAS, it is deemed necessary and advisable that City should authorize Urban Renewal Tax Increment Revenue Obligations, as provided by Iowa Code Chapter 403, pursuant to the Development Agreement; and WHEREAS, before said Obligations may be approved, Iowa Code Chapter 403 requires that the City Clerk publish a notice of the proposal and of the time and place of the meeting at which the City Council proposes to take action thereon and at which meeting the City Council shall receive oral and/or written objections from any resident or property owner of said City to such proposed action. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. The City Clerk is hereby authorized and directed to cause a notice to be published as prescribed by Iowa Code Section 403.9 of a public hearing on the City's intent to approve the Second Amendment to Development Agreement by and between City of Dubuque and Kinseth Hospitality Company, Inc., including the issuance of Urban Renewal Tax Increment Revenue Obligations, to be held on the 6th day of July, 2026 at 6:30 p.m. The official agenda will be posted the Friday before the meeting and will contain listening, viewing, and public input options. The City Council agenda may be accessed at https://dubuqueia.portal.civicclerk.com/ or by contacting the City Clerk's Office at 563- 589-4100, ctyclerk@cityofdubuque.org. Section 2. The City Council will meet at said time and place for the purpose of taking action on the matter of approving the Second Amendment to Development Agreement and the issuance of Urban Renewal Tax Increment Revenue Obligations relating thereto with Kinseth Hospitality Company, Inc., the proceeds of which Obligations will be used to carry out certain of the special financing activities described in the Urban Renewal Plan for the Greater Downtown Urban Renewal District, consisting of the funding of economic developments grants to Kinseth Hospitality Company, Inc. pursuant to the Development Agreement. It is expected that the aggregate amount of the Tax Increment Revenue Obligations to be issued will be approximately $2,820,878.61. Section 3. The City Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in said City, said publication to be not less than four days nor more than twenty days before the date of said meeting on the issuance of said Obligations. Section 4. That the notice of the meeting shall be in substantially the form attached hereto. Passed, approved and adopted this 15th day of June 2026. ra M. Cavanagh, Mayor Attest: Trish L. Gleason, Assistant City Clerk 2 CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque lowa will conduct a public hearing on the 6t" day of July, 2026, at 6:30 p.m., in the Historic Federal Building, 350 W. 6t" Street, 2"d floor, Dubuque, lowa, at which meeting the City Council proposes to take action to approve the Second Amendment to Development Agreement between the City of Dubuque, lowa and Kinseth Hospitality Company, Inc., a copy of which is now on file at the Office of the City Clerk, City Hall, 50 W 13th Street, Dubuque, lowa, providing for the issuance of economic development grants (Urban Renewal Tax Increment Revenue Grant Obligations) described therein in order to carry out the purposes and objectives of the Urban Renewal Plan for the Greater powntown Urban Renewal Area Economic Development District, including the funding of economic development grants for Kinseth Hospitality Company, Inc., under the terms and conditions of the Urban Renewal Plan for the Greater powntown Urban Renewal Area Economic Development District. The aggregate amount of the Urban Renewal Tax Increment Revenue Grant Obligations cannot be determined at the present time but is not expected to exceed $2,820,878.61. 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 City Council agenda will be posted the Friday before the meeting and will contain public input options. The agenda can be accessed at https://dubuqueia.portal.civicclerk.com/ or by contacting the City Clerk's Office at 563-589-4100, ctyclerk@cityofdubuque.org. Written comments on the public hearing may be submitted to the City Clerk's Office by email at ctyclerk@cityofdubuque.org or by mail to City Hall, 50 W. 13t" St., Dubuque, IA 52001, before the scheduled hearing. The City Council will review all written comments at the time of the hearing. Documents related to the public hearing 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 requiring special assistance should contact the City Clerk's Office as soon as feasible. Deaf or hard-of-hearing individuals can use Relay lowa by dialing 711 or (800) 735-2942. Published by order of the City Council given on the 15th day of June, 2026. Adrienne N. Breitfelder, CMC, City Clerk Page 1162 of 1594 Trish Gleason From: Brad Cavanagh Sent: Monday,June 15, 2026 3:30 PM To: Trish Gleason; Cori Burbach; Mike Van Milligen; Crenna Brumwell Subject: Fw: Item to be set for public hearing - Kinseth Hospitality Company, Inc. Trish, Can you please add the email below as public correspondence to the set for public hearing item related to the Kinseth Hotel agreement?Thank you. THE C1TY OF ��� � Brad Cavanagh Mayor City Hall � 50 West 13t" St., Dubuque, IA, 52001 ���t��p�� p� fj������,����� 563-690-6502 � www.citvofdubuque.orq/citvcouncil From: Daniel Walsh <walshdbq@gmail.com> Sent: Monday,June 15, 2026 12:10 PM To: Brad Cavanagh <Bcavanagh@cityofdubuque.org>; David T. Resnick<dresnick@cityofdubuque.org>; Chris Staver <cstaver@cityofdubuque.org>;Tyson Leyendecker<tleyendecker@cityofdubuque.org>; Laura Roussell <Lroussell@cityofdubuque.org>; Danny Sprank<Dsprank@cityofdubuque.org>; Katy Wethal <Kwethal@cityofdubuque.org> Cc: dwalsh@caprabank.com <dwalsh@caprabank.com> Subject: Item to be set for public hearing- Kinseth Hospitality Company, Inc. You don't often get email from walshdbq@gmail.com. Learn why this is important Caution! This message was sent from outside your organization. Allow sender � Block Never give your login information and password over email! sender � Report Mayor Cavanagh and City Council Members, I recognize that tonight the city council may vote to proceed with a public hearing to allow for formal comment on the agenda item related to the development agreement between the City of Dubuque and Kinseth Hospitality Company, Inc. Prior to setting this item for public hearing, I hope the council will discuss the larger picture as to whether the proposed amendment to the development agreement should even be considered by council. The original development agreement was approved bythe City Council in a public hearing on September 16, 2024, That public hearing allowed for other potential developers the opportunityto bringforward competing proposal(s)for development of the property in the Port of Dubuque. That would have allowed the City Council to select the proposal it deemed was in the best interest of the community. No i Page 1163 of 1594 competing proposals were received and the City selected Kinseth for the Port of Dubuque hotel project. In that time, Kinseth has not performed on any portion of the development agreement including most notably on the purchase of the land.The City of Dubuque has only received empty promises from the developer and has received no consideration for the amendments to the development agreement. The memos to the City Council indicate that Kinseth was not able to perform on the original development agreement or the 1 st amendment to the development agreement due to "unforeseen difficulties" in the lending environment. Since the time that the original development agreement was approved, the developer has opened or rebranded the following properties: • TownePlace Suites in Duluth • Tru by Hilton in Oshkosh • Holiday Inn Coralville-lowa City. In addition, Kinseth started construction on an AC Hotel by Marriott in Cedar Rapids in April 2025 with anticipated opening in Summer 2026. The idea that difficulties in the lending environment hampered the Port of Dubuque development seem disingenuous at best. The proposed second amendment to the development agreement provides more favorable terms to the developer than the original development agreement and the first amendment to the development agreement. Specifically, Kinseth is receiving: • Lower land acquisition cost-$160,000 per acre as proposed compared to $400,000 per acre in the original development agreement. This represents a 60% decrease in the price per acre. • Smaller required up front investment- From $30 million to $18 million • Reduced room count-from 160 rooms to 90 rooms • Extended TIF- Going from 10 years to 12 years • Change in hotel brand - Going from Courtyard/AC to Spring Hill Suites • City is now obligated to construct stub streets compared to having the option to construct streets. I fear that the developer has only locked up 12+ acres of land in the Port of Dubuque from other competing developments with no consideration given to the City other than a development agreement on which they have never performed. My recommendation is for the City to go back to the drawing board related to this parcel of land and/or put more teeth in the development to protect the City of Dubuque's interests. Thanks for your consideration. Sincerely, Dan Walsh 1219 Arrowhead Dr. Dubuque, IA 52003 walshdbq@gmail.com 563-564-9041 2 Page 1164 of 1594