Loading...
Setting Public Hearing for Consenting to the Renewal of Operating Line of Credit between the Dubuque Racing Association LTD. and Nicolet National BankCity of Dubuque City Council Copyrighted August 17, 2026 ITEMS SET FOR PUBLIC HEARING # 2. ITEM TITLE: Setting Public Hearing for Consenting to the Renewal of Operating Line of Credit between the Dubuque Racing Association LTD. and Nicolet National Bank SUMMARY: SUGGUESTED DISPOSITION: ATTACHMENTS: City Attorney recommending City Council set a public hearing on the consent to the DRA renewal of its line of credit for operations for September 8, 2026. RESOLUTION Setting A Date For A Public Hearing To Consent To The Renewal Of The Operating Line Of Credit Between The Dubuque Racing Association Ltd. And Nicolet National Bank Receive and File; Adopt Resolution(s), Set Public Hearing for September 8, 2026 1. Notice of Public Hearing_LOC City Consent 2. Council Consent to Renewal of LOC Draft 8-12-26 3. Resolution 4. Executed Promissory Note —Redacted CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public hearing on the 8th day of September, 2026, at 6:30 p.m., in the Historic Federal Building, 350 W. 61" Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes to Consent to the Renewal of the Operating Line of Credit between the Dubuque Racing Association LTD. and Nicolet National Bank. 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://dubugueia.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 Iowa by dialing 711 or (800) 735-2942. Published by order of the City Council given on the 17th day of August, 2026. Adrienne N. Breitfelder, CIVIC, City Clerk THE CITY OF DUB E Masterpiece on the Mississippi CRENNA M. BRUMWELL, ESQ. CITY ATTORNEY TO: MAYOR BRAD M. CAVANAGH & MEMBERS OF THE CITY COUNCIL DATE: AUGUST 12, 2026 Dubuque AII•Amerin Cily I I 2007-2012.2013 2017*2019 RE: CONSENT TO DUBUQUE RACING ASSOCIATION RENEWAL OF OPERATING LINE OF CREDIT WITH NICOLET NATIONAL BANK The City has a lease with the Dubuque Racing Association (DRA). The DRA has an existing line of credit for operations which the City Council consented to pursuant to the lease. The current operating line of credit originated with MidWestOne Bank and is now held by Nicolet National Bank. The DRA seeks to renew the line of credit for operations with Nicolet National Bank. As the line of credit is secured by the leasehold mortgage with the City, City Council consent is necessary for the renewal. I respectfully recommend City Council set a public hearing on the consent to the DRA renewal of its line of credit for operations for September 8, 2026. cc: Michael C. Van Milligen, City Manager 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 Prepared by Crenna M Brumwell City Attorney, 300 Main Street Suite 330 Dubuque IA 52001 (563) 589-4381 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1311 St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 314-26 A RESOLUTION SETTING A DATE FOR A PUBLIC HEARING TO CONSENT TO THE RENEWAL OF THE OPERATING LINE OF CREDIT BETWEEN THE DUBUQUE RACING ASSOCIATION LTD. AND NICOLET NATIONAL BANK WHEREAS, the City has a lease with the Dubuque Racing Association Ltd.; and WHEREAS, the Dubuque Racing Association Ltd. has a revolving line of credit for daily operations; and WHEREAS, the City has previously consented to the line of credit up to $1,500,000 with MidWestOne Bank; and WHEREAS, the revolving line of credit must periodically be renewed; and WHEREAS, the Dubuque Racing Association Ltd, seeks the City's consent to renew its operating letter of credit with Nicolet National Bank for up to $1,500,000; and WHEREAS, the letter of credit is secured by the leasehold mortgage, previously consented to by the City, but approval of the renewal of the letter of credit requires a separate City consent as it is a disposition of an interest in real estate; and WHEREAS, the City Council of the City of Dubuque finds that the City should consent to the renewal of the operating line of credit as it facilitates day to day operations of the facility; and WHEREAS, a public hearing on the Renewal of the Operating Line of Credit between the Dubuque Racing Association Ltd. and Nicolet National Bank should be scheduled for September 8, 2026 at 6:30 p.m. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. That the City Council will meet in the Historic Federal Building, Council Chambers, 2nd Floor, 250 West 6tn Street, Dubuque, Iowa at 6:30 p.m. on September 8, 2026 for the purposes of holding a public hearing and taking action to approved the Renewal of the Operating Line of Credit between the Dubuque Racing Association Ltd. and Nicolet National Bank. Section 2. That the City Clerk is hereby authorized and directed to publish a notice of such public hearing and the City Council's intent to review and approve the Renewal of the Operating Line of Credit between the Dubuque Racing Association Ltd. and Nicolet National Bank. Passed, approved and adopted this 17t' day of August, 2026. Brad M. Ca an gh, Mayor Attest: - 4 4-"d4- Adrienne N. Breitfelder, City Clerk 111111111111111111111111111111111111 HL6 PROMISSORY NOTE Principal Loan Date Maturity Loan No Call/toll Account Officer Initials $1,500 000.00 09-Ot-2026 0701.2029 220/1370 WRB References In the boxes above are for=sea use cgi end do not limit the 'has applicability of this document to any particular loan or gem. An its above continuebeen omitted due to text length limitations. Borrower: DUBUpUE RACING ASSOCIATION, LTD. Lender: Nicolel National Bank 1855 GREYHOUND PARK ROAD Dubuque - Main Street OUBUOUE, IA 52001 895 Main St. Dubuque, IA 52001 (563) 682-1841 Principal Amount: $1,500,000.00 Date of Note: September 1, 2026 PROMISE TO PAY. DUBUpUE RACING ASSOCIATION, LTD. ("Borrower") promises to pay to indict National Bank ("Lender"), or order, in lawful money of the Urged States of America, the principal amount of One Million Five Hundred Thousand & 00/100 Dollars ($1,500,000.DO) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the data of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid Interest on July 1, 2029. In addition, Borrower will pay regular monthly payments of all accrued unpaid Interest due as of each payment date, beginning October 1, 2026, with all subsequent Interest payments to be due on the some day of each month after that Unless otherwise agreed or required by applicable law, payments will be applied First to any accrued unpaid interest; than to principal; then to any escrow or reserve account payments as required under any mortgage, deed of trust, or whey security instrument or security agreement securing this Not; then to any late charges; and then to arty unpaid collection costs. Borrower will pay Lender at Lundeen address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change fmm time to tune based on changes in an independent Index which is the WALL STREET JOURNAL PRIME RATE (the "IntleX'). The Index Is not necessarily the lowest ate charged by Lender on its loans. Lender will tell Borrower the current Index rate upon Borrowers request. The Interest mile change will not occur more often than each DAY. Borrower understands that Lender may make loans based on other rates as well. Interest on Me unpaid principal balance of this Note will be calculated as described in the "INTEREST CALCULATION METHOD" paragraph using a rate equal to the Inez. If Lender determines, in its sole discretion, that the Index has become unavailable or unreliable, either temporarily. Indefinitely, or permanently, during the term of this Note, Lender may amend this Note by designating a substantially similar Substitute index. Lender may also amend and add a positive or negative margin (percentage added to or subtracted from the substitute index value) as part of the rate determination. In making these amendments, Lender may take into consideration any then -prevailing market convention for selecting a substrate index and margin for Me specific Index that is unavailable or unreliable. Such an amendment to Me terms of this Note will become effective and bind Borrower 10 business days after Lender gives written notice to Borrower without any action or consent of the Borrower. NOTICE: Under no circumstances will the interest mile on this Note be less than 0.000% per annum or more than the maximum cote allowed by applicable law. INTEREST CALCULATION METHOD. Interest on this NOW Is computed on a 365/360 basis; Met Is, by applying the ratio of the interest rate over a year Of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days Me principal balance he Outstanding. All interest payable under this Note is computed using this medical. This calculation method results in a higher effective Interest rate than the numeric Interest rate stated in this NOW. PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed ea ter than it's due. Early payments will not, unless agreed M by Lender in writing, relieve Borrower of Borrowers obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees rot to mind Lender payments merketl "paid in full", "without awume", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lenders rights under this NOW, and Borrower will remain Obligated to pay any further amount Owed to Lender. All wnttan communications concerning disputed amounts, Including any check or Other payment instrument that indicates Mat the payrrgnt constitutes "payment In full- of the amount owed or that is fendered with Other conditions Or limitations or as full satisfaction a a disputed amount must be mailed or dalivored to: MldWesiOne Bank, 102 S. Clinton Street, PO Box 1700 Iowa City, IA 522a 1700. LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 5.000% W the unpaid portion of Me regularly scheduled payment or $25.00, whichever a greatar. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the Interest rate on this Note shall be increased to 21.000% per annum based On a year of 360 days. However, in no event will Me interest rate exceed Me maximum interest rate limtations under applicable law. DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Now. Payment Default. Borrower fails to make any payment when tlue under His Note. Other Defaults. Borrower fails to comply with or to perform any Other term, obligation, comment or condition contained in this Note or in any of the related dacuments or to comply with or to perform any term, obligation, covenant or Condition contained in any other agreement between Lender and Borrower. False SMWMema. Any warranty, representation or statement made or furnished M Lender by Borrower or on Borrowers behalf under this Note or the related documents is false or misleading in any materiel respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Insolvency. The dissolution or termination of Borrowers existence as a going business, the insolvency of Borrower, the appointment of a receiver for any paid Of Borrower's property, any assignment for the benefit of cnedki any type Of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Fortelfure Proceedings. Commencement of foreclosure or foraiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the ban. This includes a garnishment of any of Borrowers amounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis Of the creditor or forfeiture proceetling and if Borrower gives Lender written notice of the creditor or mildlu ne proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding. in an amount determined by Lender, in Its sole clsrream, as being an adequate reserve or bond for the dispute. Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower. Adverse Change. A material adverse change Occurs In Borrowers financial condition, or Lender believes Me prospect of payment or performance of this Note is impaired. Ineocurity. Lender in good faith believes itself insecure. Events Affecting Guanuryi Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of Me Indebtedness or any guarantor, endorser, surety, or accommodation party riles or becomes Incompetent, Or revokes or disputes Me validity of, or liability under, any guaranty of the Indebtedness emdenced by thin Note. Cure Provisions. If any default, other than a default in payment, 's curable and if Bonower has not been given a nonce of a brearlr of the same prevision of this Note within the preceding twelve (12) months, it may be cured If Borrower, after Lender sends written notice b Borrower demanding Cure of such default: (1) cures the desalt within ten (10) days; or (2) If the cure requires more than ten (10) days, immediately initiates steps which Lender deems in Lenders sale resonance to be sufficient to curs the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may declare Me share unpaid principal balance under this We and all accrued unpaid Interest Immediately due, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may him or pay someone else to help wiled this Note if Hanover does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lander's Miami fees and Lender's legal expenses, whether or PROMISSORY NOTE Loan No:- (Continued) Page 2 not there Is a lawsuit, including without limitation all attorneys' fees and legal expenses for bankruptcy proceedings (Including efforts to modify or vacate any automatic stay Or Injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other suns provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any Jury trial In any action, proceeding, or counterclaim brought by either Under or Borrower against the other. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not prompted! by todaral law, the laws of Me State of Iowa without regard to hs conflicts of law provislons. This Note has been accepted by Under N We State of Iowa. RIGHT OF SETOFF. To the extent pennktetl by applicable law, Lender reserves a right of setoff in all Borrowers accounts with Under (whether cbecking, savings, or some other account). This includes all accounts Borrower holds faintly with someone Wee and all accounts Borrower may open In the future. However, the do" not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent penoiffed by applicable law, to charge or setoff all sums Owing on the Indebtedness against any and all such accounts. LINE OF CREDIT. This Note evidences a revolving line of credit Advances under this Note, as well as directions for payment from Borrowers accounts, may be requested orally or in writing by Borrower or by an authorized! person, Lender may, but need not, require that all oral requests be confined In ending. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions Of en authorized person or (B) coedited to any of Borrowers accounts with Lender. The unpaid principal balance owing On this Note at any time may be evidenced by erMorsements an this Note or by Lenders internal records, Including electronic reconfs. PURPOSE OF LOAN. The specific purpose of this loan is: RENEW OPERATING LINE OF CREDIT. SUCCESSOR INTERESTS. The terms of this NOW shall be binding upon Borrower, and upon Borrowers heirs, personal representatives, successors and assigns, and shall have to the benefit of Lender and its successors area assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES Borrower may notify Lender U Leader reports any inaccurate information about Borrowers accounts) to a consumer reporting agency. Borrower's written notice describing the specific inaccuracy(ies) should be sent ro Lender at the following address: MidiVesiOne Bank 102 S. Clinton Street, PO Box 1700 Iowa City, IA 52244-1700. GENERAL PROVISIONS. If any part of the Note cannot be enforced, this fad will not affect Me reel of the Note. Lender may delay or forgo enforcing any of its rights or remedied under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, W the extent allowed by law, waive presentment demand for payment, and halide of dishonor. Upon any change in Me terms of this Note, and unless otherwise expressly stated In writing, no pant who sore Ms Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail t0 mi upon or peHed Under's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the pant with Whom the modlBci is made. The obligations under this Note are joint and several. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE AND ALL OTHER DOCUMENTS RELATING TO THIS DEBT. BORROWER: OUBUQUt Si, TO By: ANTHOf MAK WILI-IA11143,1knesidoi Chief Executive Officer of DUBDQlE CING ASSOCIATION, LTD. Mai