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Dubuque Marine / Pier Pressure Marine IA_Assignment of Lease Copyright 2014 City of Dubuque Consent Items # 5. ITEM TITLE: Dubuque Marina Assignment of Lease SUMMARY: City Manager recommending approval of the Assignment of Lease with the understanding that the Assignment of Lease should not be considered by Pier Pressure Marine IA, Inc. as any indication of whether the City will or will not agree to an extension of the Lease. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type ❑ Dubuque Marina Assignment of Lease-MVM Memo City Manager Memo ❑ Staff Memo Staff Memo ❑ Pier Pressure Marine IA, Inc. Letter Supporting Documentation ❑ Assignment of Lease Supporting Documentation ❑ Aerial Photo& Plats Supporting Documentation ❑ Lease&Amendments Supporting Documentation THE CITY OF Dubuque UBgkE 111 111-America Ciii I. Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Dubuque Marina DATE: March 23, 2015 City Attorney Barry Lindahl has provided material from Pier Pressure Marine IA, Inc. requesting an assignment of the Dubuque Marina Lease, currently leased by M & K Ltd. The Lease expires December 31, 2028. Pier Pressure Marine IA, Inc. is purchasing the assets of M & K Ltd. Pier Pressure Marine IA, Inc. is owned by Ryan N. Becker, Steve Launspach, and Peter Ludwig. Purchase of the assets is subject to the City Council consenting to the assignment of the lease. The new owners have indicated that they will "develop and present to the City a comprehensive plan which will set forth numerous property improvements centered around an altogether new structure which would house the Yardarm, and boat service businesses." The owners intend to present such plans, along with a request for an extension of the lease. I recommend that the City Council approve the Assignment of Lease. However, approval of the Assignment of Lease should not be considered by Pier Pressure Marine IA, Inc. as any indication of whether the City will or will not agree to an extension of the Lease. 4 Mich el C. Van Milligen MCVM:tIs Attachment cc: Barry A. Lindahl, City Attorney F:\USERS\tsteckle\Lindahl\Leases\Dubuque Mari na_M&KLtd_PierPressureMarine\MVMMemoToCityCouncil_AssignmentOfLease_032315.docx THE CITY OF DUB UE MEMORANDUM Masterpiece on the Mississippi BARRY LINDAL CITY ATTORN Y To: Michael C. Van Milligen City Manager DATE: March 20, 2015 RE: Dubuque Marina The Dubuque Marina is currently leased by M & K Ltd., owned by Keith Kann and Mary Wilhelm. A copy of the lease documents is attached along with an aerial photo which shows the boundaries of the leased premises. The Lease expires December 31, 2028. Pier Pressure Marina IA, Inc. is purchasing the assets of M & K Ltd., subject to an Assignment of the Lease by M & K Ltd. To Pier Pressure Marine IA, Inc. Attached is a copy of a letter from the owners of Pier Pressure Marine IA, Inc. requesting City consent to the Assignment of the Lease. Also attached are the resumes of the three owners of Pier Pressure Marine IA, Inc.: Ryan N. Becker, Steve Launspach, and Pete Ludwig. The Lease Agreement allows the Lessee to assign the Lease with the prior written approval of the City "to the end that Lessor's interests shall be fully protected." I recommend that the Assignment of Lease and Consent, Acknowledgment and Agreement of City of Dubuque be submitted to the City Council for consideration. BAL:tIs Attachment cc: Steve Brown, Project Manager F:\USERS\tsteckle\Lindahl\Leases\Dubuque Mari na_M&KLtd_PierPressureMarine\MVM_AssignmentOfLease_032015.doc March 17, 2015 Michael Van Milligen City Manager City of Dubuque 50 West 13th Street Second Floor Dubuque, IA 52001 Re: Assignment of Lease; Dubuque Marina Dear Mr.Van Milligen: This letter is intended to accompany the ASSIGNMENT OF LEASE between M & K Ltd. ("Assignor" or "Sellers")and Pier Pressure Marine, ("Assignee" or"Buyers"). Assignor, is owned by Keith and Mary Kann and does business as Dubuque Marina and the Yardarm Restaurant and Bar at 1201 Shiras Avenue, Dubuque. Assignee is owned by Ryan Becker, Peter Ludwig and Stephen (Steve) Launspach and is currently in the process of acquiring the assets of Dubuque Marina and the Yardarm Restaurant and Bar from Assignor. The subject acquisition is conditioned upon the current lease by and between the City of Dubuque and the Assignor for the property at 1201 Shiras Avenue, Dubuque, being assigned to the Assignee and,specifically, said ASSIGNMENT OF LEASE being approved by the City of Dubuque. As Buyers, we are excited at the prospect of owning and operating the Dubuque Marina. We intend to introduce the same new energy and vitality into this important riverfront property as we have seen applied at so many others on the Dubuque riverfront. We need the Assignment of Lease in order to make this acquisition. In due course we will also develop and present to the City a comprehensive plan which will set forth numerous property improvements centered around an altogether new structure which would house the Yardarm, and boat service businesses. We intend to present such plans, along with a request for extension of lease as soon as is practicable. We submit the ASSIGNMENT OF LEASE,this introductory letter, and the accompanying background information on Becker, Ludwig and Launspach for consideration by you and the Dubuque City Council, and we respectfully request your approval. We would be glad to answer any questions you might have. Thanking you in advance, 14�ec Ryan Becker Peter Ludwig Steve Launspach ASSIGNMENT OF LEASE This Assignment of Lease (this "Assignment") is made and entered into as of , 2015, by and between M & K Ltd. ("Assignor') and Pier Pressure Marine IA, Inc. ("Assignee"). Recitals A. Assignor and Assignee have entered into negotiations regarding the form of an asset purchase agreement (the "Purchase Agreement"), pursuant to which it is contemplated that Assignor will sell to Assignee and Assignee will purchase from Assignor substantially all of Assignor's assets related to its operation of the Dubuque Marina. B. Pursuant to the Purchase Agreement, Assignor has agreed to sell, assign, and transfer to Assignee all right, title, and interest in and to, and Assignee has agreed to assume all of Assignor's prospective obligations under, that certain Lease and Agreement between Assignor and the City of Dubuque dated October 29, 1956, as amended October 26, 1956, December 25, 1957, June 11, 1973, October 3, 1988, and April 12, 1999, with respect to all property and property rights for the rental and utilization of the real property described therein (the"Lease"). NOW THEREFORE, for good and valuable consideration received, Assignor and Assignee agree as follows: Section 1. Assignment Subject to and simultaneously with the closing contemplated by the Purchase Agreement (the "Closing"), and in consideration for the amounts and other consideration described in the Purchase Agreement, Assignor hereby sells, assigns, and transfers to Assignee all of Assignor's right, title, and interest in and to the Lease. Section 2. Assumptions Subject to and simultaneously with the Closing, Assignee assumes all of Assignor's prospective obligations, duties, responsibilities, and liabilities under the Lease arising after the Closing. For clarification purposes and avoidance of doubt, the parties hereto acknowledge and agree that Assignee is not assuming any of Assignor's obligations, duties, responsibilities, liabilities or commitments under the Lease to the extent such obligations, duties, responsibilities, liabilities and commitments arise out of, relate to or are in respect of the period prior to the Closing, all of which are expressly retained by Assignor. Section 3. City of Dubuque Consent to Assignment Notwithstanding anything to the contrary in this Assignment, this Assignment shall not be effective unless and until the City of Dubuque has executed the Consent, Acknowledgment and Agreement in the form attached hereto as Exhibit A. Section 4. Assignor's Covenants Assignor covenants that: (a) it is in possession under the Lease; (b) the Lease is in full force and effect; (c) there are no defaults under the Lease; (d) no acts or events have occurred which with the passing of time or the giving of notice or both could later become defaults under the Lease; and (e) the Lease has not been modified, amended, or otherwise changed in writing or in any other manner. Section 5. Indemnity Assignor agrees to indemnify Assignee for any loss, cost or expense, including attorney's fees and court costs, relating to the Lease and accruing on or before the date of the Closing. Assignee agrees to indemnify Assignor for any loss, cost, or expense, including attorney's fees and court costs,relating to the Leases and accruing subsequent to the date of the Closing. Section 6. Successors This Assignment shall be binding on and inure to the benefit of the parties to it, their heirs, executors, administrators, successors in interest, and assigns. Section 7. Severability If any term or provision of this Assignment shall be held invalid or unenforceable, the remainder of this Assignment shall not be affected. Section 8. Waivers No waiver or breach of any covenant or provision shall be deemed a waiver of any other covenant or provision, and no waiver shall be valid unless in writing and executed by the waiving party. Section 9. Construction Headings are solely for the parties' convenience, are not a part of this Assignment, and shall not be used to interpret this Assignment. The singular form shall include plural and vice versa. This Assignment shall not be construed as if it had been prepared by one of the parties, but rather as if both parties have prepared it. Unless otherwise indicated, all references to sections are to this Assignment. Section 10. Counterparts This Assignment may be executed in one or more counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument. 2 Section 11.Amendment This Assignment may not be amended or altered except by a written instrument executed by Assignor and Assignee. Section 12. Further Assurances Whenever requested to do so by the other party, each party shall execute, acknowledge, and deliver any further conveyances, assignments, confirmations, satisfactions, releases, powers of attorney, instruments of further assurance, approvals, consents, and any further instruments or documents that are necessary, expedient, or proper to complete any conveyances, transfers, sales, and assignments contemplated by this Assignment. In addition, each party shall do any other acts and execute, acknowledge, and deliver any requested documents in order to carry out the intent and purpose of this Assignment including, without limitation, any and all acts necessary or appropriate to have this Assignment approved by the City of Dubuque in order to effectively convey and assign the Lease (together with any and all rights thereunder) to Assignee. Section 13. Third-Party Rights Nothing in this Assignment, express or implied, is intended to confer upon any person, other than the parties and their respective successors and assigns, any rights or remedies. Section 14. Attorney's Fees In the event of any litigation between Assignor and Assignee arising out of the obligations of Assignor under this Assignment or concerning interpretation of any of its provisions, the losing party shall pay the prevailing party's costs and expenses of the litigation, including reasonable attorney's fees. Section 15. Governing Law This Assignment shall be governed and construed in accordance with the laws of the j State of Iowa. I 3 i IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first written above. ASSIGNOR: ASSIGNEE: M & K LTD. By: PIER PRESSURE MARINE IA, INC. By: Keith Kann, President Ryan Becker, President 4 IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first written above. ASSIGNOR: ASSIGNEE: M & K LTD. PIER PRESSURE MARINE IA, INC. By: By: Keith Kann, President yan Becker, President IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first written above. ASSIGNOR: ASSIGNEE: M & K LTD. PIER PRESSURE MARINE IA,INC. By: By: Keith Kann, President Ryan Becker, President i I i 4 CONSENT,ACKNOWLEDGMENT AND AGREEMENT OF CITY OF DUBUQUE The City of Dubuque (the "City") has executed this Consent, Acknowledgment and Agreement (this "Consent") as of this day of April, 2015. Unless otherwise defined herein, capitalized terms used in this Consent shall have the meanings ascribed to such terms in the foregoing Assignment of Lease dated as of March , 2015 (the "Assigmnent"), between M & K Ltd. ("Assi ng_or") and Pier Pressure Marine IA, Inc. ("Assignee"), to which this Consent is attached and made a part thereof. WHEREAS, Assignor and Assignee have entered into negotiations regarding the form of an asset purchase agreement (the "Purchase Agreement"), pursuant to which it is contemplated that Assignor will sell to Assignee and Assignee will purchase from Assignor substantially all of Assignor's assets related to its operation of the Dubuque Marina. WHEREAS, pursuant to the Purchase Agreement, Assignor has agreed to sell, assign, and transfer to Assignee all right, title, and interest in and to, and Assignee has agreed to assume all of Assignor's prospective obligations under, that certain Lease and Agreement between Assignor and the City of Dubuque dated October 29, 1956, as amended October 26, 1956, December 25, 1957, June 11, 1973, October 3, 1988, and April 12, 1999, with respect to all property and property rights for the rental and utilization of the real property described therein(the "Lease"). NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the City hereby agrees with and certifies to Assignee as follows: 1. A true, correct and complete copy of the Lease is attached hereto as Exhibit A, which Lease is in full force and effect and has not been changed, modified, amended or supplemented. I 2. Neither the City nor Assignor is in default in the payment or performance of its respective obligations under the Lease. 3. The City hereby: (a) consents to all of the terms and provisions set forth in the Assignment; and (b) acknowledges and agrees that, upon the effectiveness of the Assignment, all of the interests and rights of Assignor under the Lease shall be transferred to Assignee and that the City, from and after the Closing, shall be bound to Assignee under all of the terms, covenants and provisions of the Lease arising on or after the Closing with the same force and effect as if Assignee were an original party thereto. Notwithstanding the foregoing, the City acknowledges and agrees that Assignee shall not be deemed to have assumed any of Assignor's obligations, duties, responsibilities, liabilities or commitments under the Lease to the extent such obligations, duties, responsibilities, liabilities and commitments arise out of, relate to or are in respect of the period prior to the Closing, it being understood that Assignor remains solely liable for its obligations thereunder. 4. If any provision hereof is invalid or unenforceable in any jurisdiction, then, to the fullest extent permitted by law: (a) the other provisions hereof shall remain in full force and 5 effect in such jurisdiction and shall be liberally construed in order to carry out the intentions of the parties hereto as nearly as may be possible; (b) the invalid or unenforceable provision shall be amended by the parties in order to carry out the intentions of the parties hereto as nearly as may be possible; and (c) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction. 5. This Consent shall be governed by and construed according to the internal laws (as opposed to conflicts of law provisions) of the State of Iowa. 6. The city hereby represents and warrants to Assignee that: (a) the making, execution, delivery and performance of this Consent by it has been duly authorized by all necessary municipal action; (b) the execution, delivery and performance of this Consent and the transactions contemplated hereby are not and will not be subject to any approval, consent or authorization by such party, any other party or any governmental authority, unless such consent has been obtained prior to execution hereof; and (c) this Consent is the valid and binding obligation of the City, enforceable against it in accordance with its terms. 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Tra o'l' Aes 83, 99e rr«r "v 0 SSG 4"" 20, /6 o 0 7To]`o1 5-.9L Ncres 259 9µo A_ G R E E M E N T This Agreement entered into by and between the CITY OF DUHUQU41 IOWA. through its board:.of Dock Commissioners, as First Party, and Dubuque Marina, Inc,, as Secdnd Party, W I T ry li-S'S E T H Whereas, the parties hereto have heretofore entered into a lease and agreement for a tract of land located on the - south side of the nee re boat Harbor in the City of Dubuque, which.lease is dated1956; and Whereas, the said lease provides for a term often (10) years, commencing January 1 1957 and, ending December 31, 1966with a renewal option or an a itional periods ten , - TMT years, commencing on January 1, -1967 and ending on'Decem- ber .31:'1976; and Whereas, Second Party desires to erect permanent improvements on the demised premises with an anticipated longevity greater than twenty (20) years and have requested an additional renewal option of thirty (30) years from Decem- ber, 31, ecem-ber.31, 1976, to protect their investment in said permanent improvements;. and Whereas, in consideration of the .agreements herein- after set forth, the parties hereto desire to enter into such renewal. option{ - flOW THEREFORE, IT IS AGREED by and between the par- ties hereto as.follows: 1. . That in the event Second Party has complied :with all the terms and conditions of said Lease, and shall not:be in default .therein, 'and shall have exer- cised the option granted in. Paragraph 2 of said Lease, then and in that event Second Party is granted .the -f option of renewing eaid.lease for an additional period of thirt e�arss, .00mmencing on .the 1st day of January, 1 fan ending on theist day ofecember, by giving Lessor written notice-of its exercise or such option at least sixty (60) days prior to December i, 1976; 2. In the event Second Party shall exercise the option granted in Paragraph I hereof the same Lerma -. and conditions as provided for in the original Lease shall apply, except that commencing with the year a1977 the minimum annual rental shall be Two Thousand o ars ($2,0001; 3. That effective immediately upon the exact- tion of this Agreement, Paragraph 6(d) of the ori- ginal Lease is amended to read as oIlowa: "6 (d) To construct, insall and maintain from time to time during the term of the lease, or any '. . extension thereof, such additional boat floats and mooring aecomodations as the public demand may from -. time to time require, which shall be safe, subetan- 1 "tial and orderly. No boat houses shall be permitted. � „ L Forthe purposes of this paragraph the "public demand" , 2- as used herein shall mean the public demand for boat X floats and mooring sccomodatibns at reasonable rates and charges as the same exists on April 1 of each �Y+' year." !I °IN WITNESS WHEREOF the parties hereto have caused the " a due, execution .of.this�Agreement in duplicate aR of the day and year written opposite their names, Dated¢ CITY OF UUnU U&, IOWA, Lessor - /F'r7.or(.ai o7/ /956 BY G . It's Hoard f Dock Commissioners, Datedr • j DUnUQUE MRI wA, I�nG., Leasee, CXCZa[�eti�,� i 956 By. 1 s WOWLEASE AND AGREEMENT ..... s ✓l/' - This Lease and Agreement made and entered into this 29th day of October, 1956 by and between the My OF DUBUQUE, IOWA, a municipal corporation of Iowa, through its duly authorized . Board of Dock Commissioners, hereinafter called "Lessor" and Dubuque Marina Ino., an Iowa corporation, whose principal place of bus ineas is 804 South Grandview Avenue, Dubuque, Iowa, herein- after called "Lessee", providing for the lease of the following described real estate, hereinafter referred to as the "demised premises",. to-wit;✓ A tract of land located on the south aide of the Pleasure Boat Harbor in the City of Dubuque, Iowa, as outlined in red on the attached sketch, together with the exclusive - right to moor boats and floats along the entire waterfront of the Pleasure Boat Harbor and right of access in common with the public to the harbor slopes, WITRESSETH. 1. Lessor does hereby lease to Losses the demised premises hereinbefore described, to have and to hold the same for a period of tan (10) years commencing withthe let day of January, 1957 and ending on the 31st day of December, 1966. 2. Lessee is hereby granted the option of renewing this lease for an additional period of ten (10) ya ors commencing on the let day of January, 1967 and ending on the 31st day of December, 1976 under the a.. termsand conditions as provided herein, by giving Lessor written notice of its exercise of such option at least sixty (60) days prior to the expiration of the original term of this lease. 3. Lessee egress to pay to Leaser as rental for said premises annual rentals as follows; (a) For the years 1957 to 1961, inclusive, an annual rental equal to one per cant (1%) of the gross sales, as herein defined, but not less than One Thousand Dollars ($1,000) in f any one year; (b) For the years 1962 and each year thereafter, during the . t term of this lease, or any renewal thereof, the 'annual rental shall be asum equal to one-and one-half per out (1 1/2%) of the gross sale. as herein defined, but not less than One Thousand Dollars (1,000) in any one year; , -2- (c) However, in any year during the term of this lease in which the gross sales, as heroin defined, shall equal or exceed $200,000, the rental for much year shall be a sum equal to two per cent (2%) of such gross sales. 4. The rentals herein provided for shall be due and payable as £ollowaf (a) On January 2, 1957 Leasee -hall deposit with Lessor the sum of One Thousand Dollars ($1,000) to secure the payment of the r ental due under the terms of this lease; (b) On or before January 30th of each year during the term of this lease, or any ex teaeion thereof, commencing with .. Jenuary 30, 1950 Lessee -hall submit to Lessor a statement certified by a certified public accountant showing the .gross + sales as herein defined during the preceding year, together with a remittance of the rental for such preceding year. 5. The term "gross sales" as used herein shall mean and include all cash or accrued receipts from the sales of goods, services, or merchandise by Lessee and shall include -ales or services made by any affiliate or sub-tenant of lessee which originated in or were consumated through the operation of said boat harbor, but shall not include sales of gasoline, diesel fuels, or special motor fuels, or amounts received In payment of State, Federal or Municipal -ales, excise, admissions or enter- tainment taxes. 6. In consideration of the lease of said property and the covenants hereinafter set forth Lessee agrees: (a) Prior to June 1, 1957 to construct and install sufficient floats to accomodate a minimum of one hundred (100) boats. (b) Prior to August 1, 1957 to construct a service building on the leased area. The service building shall contain toilet and shower acoomedations for men and women, a refreshment stand, a store and such other services and equipment as may be necessary and Incidental to most the needs of the public in the operation of a pleasure craft harbor: The building shall be a permanent structure of masonry construction and built in accordance with plans approved by lessor, of a minimum size of. 221 x 60, . (c) Prior to June lot, 1957 to construct a boat maintenance building is accordance with plans approved by lessor, provided, however, that in the event Lessor shall require that such building be of masonry construction, mutually agreeable pro- vision shall be made for the purchase of said building by lessor from lessee upon the termination of the leasee (d) To construct, install and maintain from time to time during the term of the lease, or any extension thereof, such additional. boat floats and mooring accomodations as the public demand may from time to time require, which shall be safe, substantial and orderly. No boat houses shall be permitted. 41 � � A -3- (a) To construct, install and oparate, during the term of this Is sae, or any extension thereof, an approved gasoline and oil float near the mouth of the harbor and to provide facilities for furnishing potable water to boats. (f) To use the premises only for the buslcees of a marine or pleasure boat harbor and lessee shall be diligent in the prosecution of the business of a boat harbor operator and will do those things necessary and proper to serve the public fairly and adquately and without discrlminetion. To eaeot reasonable rates and chargee focalities with the the usual rates and charges for comparable facilities on the Upper Mississippi River. (h) Prior to September 1, 1957 to provide and install an adequate hoist for hauling out boats and cruisers. .(i) To maintain the buildings, grounds and harbor slopes in a aVre, clean, neat and orderly condition at all times and adequately lighted. $Ss clause, however, shell not include the duty to repair any damage to the harbor elopes not caused by lessee or its agents or licensees. Lessor shall, within a reasonable time, repair any damage to the harbor elopes which substantially interferes with the full use and enjoyment of the promises. (.j) 3b comply with all applicable State, Federal and Municipal. laws and regulations and use its best efforts to require the tenants, patrons, licensees and suppliers to observe such laws and regulations and td prevent arty nuisance being oommitted)on the harbor area. (k) 1b provide insurance in oompanies authorized to do business in Iowa, in such amounts as the Lessor may determine good practice require.. (1) To fence the service area on the land sides with an eight foot cyclone type fence. 7. In consideration of the payment of the rentals herein reserved and the observance of the conditions herein to be performed by leasee. lessor agrees; (a) To provide suitable hard surface access roads in accordance with the master plan heretofore adopted by the Dook Hoard. (b) Prior to May let, 1957 to provide a water inlet for a ' boat hoist 16, x 481 near the south side of the harbor mouth at a point 200 feet east of Farragut.0treet. (a) Prior to September 1, 1957 to. extend City water service to the area. i (d) To drive not more than fifteen (15) piles for boat floats" at pointe selected by the parties, provided, however, that such edleotlonshall be made all at one time and not piecemeal.. (a) Prior to June 1, 1957 to provide not loss than 40,000 square feet or rock surfacing on the leased area for storing boats. (f) To arrange extension of electric service to the leased area. (g) To dredge the harbor as often as may prove necessary toy, provide reasonable use of the harbor by boats, y+' B. Lessee agrees to make no permanent Improvements or'.' -2J{ Installations, or changes in the buildings or permanent struaturea ' without prior written approval of lessor. A 9. All rents and charges due and payable hereunder shall; be delivered to the Dock Board at its office In Dubuque, Iowa, on or before the du. date specified herein. _ 10. Lessor agrees to pay all taxes and assessments, general or specialp that may be levied against the real estate; lessee, however, agrees to pay all taxes levied or assessed - against the improvements placed upon said premises, or pore mal property thereon, or the business conducted thereon. 11. During the term of this lease, or any extension thereof, 'lessee shall have the right to aub-let or assign any or all of Its rights in and W the said premises, provided, however, that anysuch sub-lease or assignment shall have the prior written 'approval of the lessor to the end that le asorfs interests shall be fully protected. It is understood, however, that the provisions of this clause shall not apply to the leasing of boat storage spaces from year to year by lessen in its usu 1 -.hXasi0f,�baein 12. Upon :the termination of this Aessep tZ thereof, if option ie oxorcised) for any cau.s all Improvements erected on the demised area in.accord term. of this leaser except the boatmalnien.ace srd'repair. ui^ d and any equipment installed by Lessee that cern be removes uit8out'x injury to the buildings or ground., =hell become tho pr.P,-ty O the lessor and it I. understood that this pro vi at on is pert ofthey consideration for the granting of this lease by leaser. _ shall have s period of sixty (60) days after the terminatl on of the lease to affect the removal of such property and the failure to remove any of such improvements or other property,within m oh sixty day period shall constitute an abandonment thereof, uaq as the parties hereto otherwise agree in writing. 13. If lessee shall make default 1n the payment of they rental. hereunder, or any part thereof, or shall make default fn'" the performance of any of the other covenants herein contained, :r:N and such default shall continue for a period of thirty (30) days- after written notice thereof, mailed to lessee at its address stated in the preamble hereof by United States Registered Mall, , then it shall be lawful for lessor, at its election, to declare . the term of this leaeeended sad to re-enter upon the leased premises, with or without process of law, and to expel and remove lessee or any person or parsons in or upon the same, using such force as may be necessary under the circumstances; and if at any time, by reason of such default of the lessee and the continuance thereof for such period of thirty (30) days after written notice has been (riven said term shall be so ended, lessee hereby covenants and agrees to surrender end deliver up the leased premises peaceably to the lsssor. 14• It is agreed between the parties that the waiver by lessor, or the lessee, of any breach of any term, covenant or condition herein contained, shall not be deemed to be a waiver of any subsequent bread] of the same, or any other term, covenant or condition herein contained. IN WITNESS WHEREOF the partle s hereto have caused the due execution of this agreement, in duplicate, as of the day and year first above written. CITY OF DUBUQUE, IOWA, Ls ssor, By A. Y. McDonald. Chairman Fred Neyens, Secretary Frank L. Wapner Its Board of Dock Commissioners DUBUQUE MARINA INC., Lessee By. Coors. V. Weber T. B. Roshek Glenna Weber 1 original lease is in Dock Board l Book 1 original lease is with George Weber / x LEASE: AMD AGREEMENT , \ .' This Lease� and Agreement made and entered into this day of 11956 by and between x the CITY OF DUBUQUE, IOWA, a municipal corporation of Iowa, through its duly authorized Board of Dock Commissioners, here- inafter called "Lessor" end Dubuque Marina Inc., an Iowa cor- poration, whose principal.place of business is 804 South Grand- view Avenue, Dubuque, Iowa, hereinafter called "Lessee", pro- viding for the lease of the following described real estate, hereinafter refeihed to as the "demised premises", to-wit: A tract of land located on the south side of the Pleasure Boat Harbor in the City of Dubuque, Iowa as outlined in red on the attached sketch, :together,with the exclusive right to moor boats and floats along the entire water- front of the pleasure Boat Harbor and right of access in common with the public to the harbor elopes, WITNESBpTB: 1. Lessor does hereby lease to Lessee the demised premises hereinbefore described, to have and to hold the same for a period of ten (10) years commencing with thelst day of January. 1957 and ending on the 31st day of December. 1966. 2. Lessee is hereby granted the option of renewing this lease for an additional period of ten (10) years commenc- ing on the let day of January, 1967 and ending on the 31st day of December, 1976 under the same terms and conditions as provided herein, by giving Lessor written notice of its exer- cise of such option at least sixty (60) days prior to the ex- piration of the original term of this lease. 3. Lessee agrees to pay to Lessor as rental for said premises annual rentals as follows: (a) For the years 1957 to 19611t inclusive, an annual rental equal to one per cent ` %) of the gross sales, as herein defined, but not less than One Thousand 6 Dollars ($1,000) in any one year; (b) For the years 1962 and each year thereafter, Buri g the.term of this lease, or any renewal thereof, +a" the ;nnual rental stall be a sum equal to one and one- half per cent (1 12,4) of the gross sales, as herein de- . .- fined, but not-lase than One ThousandBoilers ($1,000) t?.' in any one year; {{ 1 PW _2.. (cl However, in any year during the term of this lease in which the gross sales, as herein defined, shall equal or exceed $200,000, the rental for such year shall be a sum equal to two per cent (2$) of such gross sales. 4. .The rentals herein provided for shall be due and payable as follows: (a) On January 2, 1957 Lessee shall deposit with Lessor the sum of One Thousand Dollars ($1,000) to secure the payment of the rental due under the terms of this lease; (b) On or before January 70th of each year during the term of this lease, .or any extension thereof, comment- ing with January 70, 1958 Lessee shall submit to Lessor statement certified by a_certified public accountant showing the gross sales as herein defined during the pre- ceding year,. together with a remittance of the rental or such preceding year. 5. The term "gross saleac as used herein shall mean and include all cash or accrued receipts from the sales of goods, services, or merchandise by Lessee and shall include se esl or services made by any affiliate or sub-tenant'of lessee _ which originated in or were consumated through the operation of said boat harbor, out shall not include sales of gasoline, diesel fuels, or special motor fuels, or amounts received in payment of State, Federal or Municipal sales, excise, admis- sions or entertainment taxes. 6. In consideration of the lease of said property and the covenants hereinafter set forth Lessee agrees: (a) Prior to June 1, 1957 to construct and install sufficient floats to accomodate a minimum of one hundred (100) boats. (b) Prior to August 1, 1957 to construct a service building on the leased area. The service building shall contain toilet and shower accomodationa for men and women, a refreshment stand, a store and such other services and equipment as may be necessary and incidental to meet the needs of the public in the operation of a pleasure craft harbor. The building shall be a permanent structure of masonry construction and built in accordance with plans approved by lessor, of a minimum size of 221 x 60*. (c) Prior to June let, 1957 to construct a boat maintenance building in accordance with plans approved by lessor, provided however, that in the event Lessor shall require that sua building be of masonry construction, mutually agreeable provision shall be made for the pur- 6chase of said building by lessor from lessee upon the termination of the lease. -3� (d) To construct, install and maintain from time to time during the term of the lease, or any extension thereof, such additional boat floats and mooring acaomo- dations as the public demand may from time to time require, which shall besafe, substantial and orderly. No boat houses shall be permitted. . (e) To construct, install and operate during the term of Ahis lease, or any extension th wear, an approved. gasoline and oil float near the mouth of the harbor and" - - to provide facilities for furnishing potable water to boats. (f) To use the premises only for thee- business of a marine or pleasure boat harbor and lessee shall be diligent in the prosecution of the business of a boat harbor operator and will do those things necessary and proper to serve the .public fairly and adquately and without discrimination. . (g) To exact reasonable rates and charges consistent with the usual rates and charges for comparable facilities on the Upper Mississippi River. (h) Prior to Septemo er 1 1957 to provide and in- stall an adaivate hoist for hauling out boats and cruisers. (i) To maintain the buildings, grounds and harbor slopes in a safe, clean, neatand orderly condition at all times and adequately lighted. This clause, however, V shall not include the duty to repair any damage to the harbor slopes not caused by lessee or its agents or li- cenases. Lessor shall, within a reasons ble time, repair any damage,to the harbor slopes which substantially inter= fares with the full use and enjoyment of the premises. (,j) To comply with all applicable State, Federal and Municipal laws and regulations and use its best..efforW to require the tenants, patrons, licensees and suppliers to 1% observe such laws and regulations and to prevent any nui- sance being committed on the harbor area. (k) To provide insurance in companies authorized to do business in Iowa, in such amounts as the Lessor may de- termine good practice requires. (1) To fence the service area on the land sides with an eight foot cyclone type fence. 7. In consideration of the payment of the rentals herein reserved and the observance of the conditions herein to be performed by lessee, lessor agrees: (a) To provide suitable hard surface access roads in accordance with the master plan heretofore adopted by the Dock Hoard. (b) Prior to May let, 1957 to provide a water inlet for a boat hoist 16, x 4$1 near the south side of the harbor mouth at a point 200 feet .east of Farragut Street. . -4- (c) Prior to September 1, 1957 to extend City water - -� service to the area, (d) To drive not more than fifteen (15) piles for boat floats at points selected oy the parties; provided, however, that such selection shall be made all at one time and not piecemeal. (e) Prior to June 1, 1957 to provide not less than 40,000 square feet of rock surfacing on the leased area for storing Wets. (f) To arrange extension of electric service to the leased area. (g) To dredge the Farber as often as may prove neces- sary to provide reasonable use of the harbor by costa. 8. Lessee agrees to make no permanent improvements or installations, or changes in the buildings or permanent structures without prior written approval of lessor. 9. All rents and charges due and payable hereunder shall be delivered to the Dock Board at its office in Dubuque, Iowa, on or before the due date specified herein. 10. Lessor agrees to pay all taxes and assessments, general or special, that may be levied against the real estate; lessee, however, agrees to pay all taxes levied or assessed against the improvements placed upon said premises, or personal property thereon, or the business conducted thereon. 11. During the term of this lease, or any extension thereof, lessee shall have the right to sub-let or assign any or all of its rights in and to the said premises, provided, however, that any such sub-lease or assignment shall have the prior written approval of the lessor to the end that lessorfa interests shall be Hilly protected. It is understood, however, that the provisions of this clause shall not apply to the leas- ing of boat storage spaces from year to year by lessee in its usual course of business. 12. Upon the termination of this lease , (or the renewal thereof, if option is exercised) for any cause all buildings and improvements erected on the demised area in accordance with the terms of this lease, except the boat main- tenance and repair building and any equipment installed by Les- see that coni be removed without injury to the buildings or grounds, shall become the property of the Imaor and it is under- stood that this provision is part of the consideration for the granting of this lease by lessor. Lessee shall have a period of sixty (60) days after the termination of the lease to ef- fect the removal of such property and the failure to remove any of .such improvements or other property within such sixty day period shall constitute an abandonment thereof, unless the parties hereto otherwise agree in writing. 13. If leasee shall make default in the payment of the rentals hereunder, or any part thereof, or shall make de- fault in the performance of any of the other covenants herein contained, and such default shall continue for a period of thirty (30) days after written notice thereof, mailed to les- see at its address stated in the preamble hereof by United States Registered Mail, then it shall oe lawful for lessor, at its election, to declare the term of this lease ended and to re-enter upon the leased premises, with or without process of law, and to expeland remove lessee or any person or parsons in or upon the same, using such force as may be necessary under the circumstances; and if at any time, by reason of such de- _ fault of the lessee and the continuance thereof for such period of thirty (301 days after written notice has seen given said term shall be so ended, lessee hereby .covenants and agrees to surrender and deliver up the leased premises peaceably to the lessor. l � v 14. It is agreed between the parties that the waiver by lessor, or the lessee, of any breach of any term, covenant cr condition herein contained, shall not bedeemedto be a weaver of any subsequent breach of the same, or Any other term, covenant' or condition herein contained. IN WITNESS WHER40F the parties hereto have caused the due execution of this agreement, in duplicate, as of the ''day and year first above written. GITY OF DUBUQUE, IOWA, Lessor, .— Its H rd of Dock Commissioners DUBUQUE MARIBA IBC„ Lessee 1 v MODIFICATION OF LEASE Whereas, the parties hereto, on October 29, 1956, entered into a lease and agreement concerning the leasing of property therein described, and generally known as the "Pleasure Boat Harbor"; and Whereas, under the provisions of Paragraph 7b of said Lease the Lessor agreed to provide a water inlet for,a boat hoist 16, x 48' in size, near the south side of the harbor , mouth, prior to May let, 1957; and Whereas, due to shortage of sheet steel piling Lesa 195 ';bees able to provide said boat well prior to �2[J G Whereas, in order tr, provide for the effective use o fa;� said boat well. Lessee desires to increase the leased area to include a strip forty-five feet (451) wide and two hundred feet (2000 long, designated as Tract B on the attached plan; and Whereas, the parties are desirous of entering into an agreement to provide for the modification of said lease to accomplish the above stated objectives; NOW THEREFORE, IT IS MUTUALLY AGREED, between the parties hereto as follows: 1. That the leased area under the lease described in the preamble hereof shall include the tract of land two hundred feet long (20011 and forty five feet (451) wide, designated as "Tract .H" on the attached plan; 2. That the time for the performance of Lessor 1s obliga- tionClause 7b of said Lease and Agreement is extended to G, ?_eO_Vxo, 195 /+M Dated at Dubuque, Iowa, this day of A.D. 1957. CITY UllU nU i IOWA, Lessor, c ono ( 611 Neyena) (F•ank L. Wagner) Its Board of Dock Commissioners DUDUQU, ,ARINA INC, Lessee, B (George V. eber (T.B.Roshek) (Glenna Weber) \4 AMENlItENT TO LEASE THIS AGREEPIRNT entered into by and between City of Dubuque Iowa, ghrough its Board of Dock Commissioners, as Firat Party, and Dubuque Marina, Inc., as Second Party, do hereby amend the written Lease entered into by and between theparties hereto, dated October 23, 1956; NOH THEREFORE for good and valuable consideration, receipt whereof is herewith acknowledged by First Party from Second Party and for and in consideration of, the mutual cunvenants herein to be kept and maintained by the parties hereto, said written Leave Agreement bearing date of October 29, 1956 be and the same is hereby amended in the following particulars: 1. That the preamble thereof be and the some is hereby amended by adding the following, to-wit: "'Tract "C"and Tract "D" located in the easterly end of the Pleasure Boat Harbor in the City of Dubuque, Iowa and as outlined in red on the respective Exhibits marked "B" and "C"." 2. "Lessor does hereby lease to Leasee the demised premises hereinbefore described,to have and to hold the same for the period of yO years commencing With the /.,.e—day of �,: 19 Zj and ending on the 3L,F•;i 7 day o£ 19 . 3. Said Lease is hereby amended by striking Paragraph 2 thereof, and inserting in lieu thereof: 11 2 . Lessee is hereby granted the option of renewing the Lease fir an additional period of .30 years Commending On the day of Qx . 1999el and ending on the day of &I k3aa'a9 under the same terms and conditions as provided herein by giving Lessor written notice of its exercise of such option at least sixty (60) days prior to the ex- piration of the Original term of this lease," IN WITNESS WHEREOF the parties hereto be caused the due execution of this Agreement this _rr/_r L", day of 1973. CITY OF DUBUQUE, IOWA, Lessor, By. Its Board of Dock Commissioner. DUBUQ NINA, LNC.. Lee e, BY: AMLODMENT TO LEASE AGREEMENT This Amendment to Lease Agreement is entered into this 3rd day of October , 1988, between the City of Dubuque, Iowa (City) , an Iowa municipal corporation, and American Marine of Iowa, Inc. (American) . WHEREAS, the City and Dubuque Marina, Inc. entered into a Lease and Agreement, dated October 29, 1956 , which Lease and Agreement was amended by amendments of October 26, 1956, December 25, 1957, and June 11, 1973; AND WHEREAS, Dubuque Marina, Inc. has assigned or will assign all its interest in the Lease and Agreement, as amended, to American, by an assignment to be effective December 31, 1988; AND WHEREAS, the City and American now desire to further amend the Lease and Agreement, as amended. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. This Amendment to Lease Agreement shall take effect if and only if Dubuque Marina, Inc. assigns all its interest in the Lease and Agreement dated. October 29, 1956, as amended, such assignment to take effect on December 31, 1988. 2. The City hereby leases to American two additional tracts of land identified on the attached Exhibit A as "Tract E" and "Tract F, " upon the terms and conditions set forth herein. 3. Tracts E and F are subject to utility easements, shown on attached Exhibit B, which are hereby preserved, and American acknowledges and agrees to preserve such easements, and in addi- tion, specifically agrees as follows: (a) The City reserves a perpetual and assignable right to enter upon Tracts E and F for the purpose of maintaining, repairing, operating, patrolling and replacing the. existing flood control levy and all appurtenances thereto, which shall include the right to clear, cut, fill, remove and dispose of any and all timber, trees, underbrush, buildings or other obstructions. Ameri- can shall not construct any structure or operate any machinery on, under or across the levy, nor excavate or make any changes in the levy or on Tracts E or F without the prior written consent of the U. S. Army Corps of Engineers and the City, which shall require that any such construction, operation or alteration will not ad- versely affect the functioning of the flood control levy. Ameri- can shall submit a written request and plans to the Corps of Engi- neers and the City for any such construction, operation or altera- tion. -L- (b) The City reserves unto itself a 20 '-wide easement for the water line on Tract F. as shown on attached Exhibit A. 4. Prior to making any improvements in or on Tracts E and F, American shall comply with all applicable local ordinances and state and federal laws and regulations. 5. Paragraphs 3, 4 and 5 of the Lease and Agreement dated October 29, 1956, as amended, are hereby deleted, and the following are substituted in lieu thereof: 3. Beginning in 1989, the annual base rental paid by American to the City shall be $15,000 for 1989 , _ 1990, 1991 and 1992. The base rental shall be increased or decreased annually beginning in 1990 by the increase or decrease in the Consumer Price Index for Urban Wage Earners and Clerical Workers, United States City Average, from August, 1988 to the anniversary date of the original Lease and Agreement in each lease year, according to the Schedule of Rental Payments, attached as Exhibit C- 4- Rental payments representing the base rental plus adjustment for cost of living shall be due and payable as follows : For 1989: 1/2 on December 31, 1988 1/4 on April 1, 1.989 1/4 on July 1 , 1989 For 1990 and all subsequent years, quarterly, on October 1, January 1, April 1 and July 1 Rental payments shall be made to the City Treasurer, City Hall, Dubuque, Iowa 52001. 5 . In no event shall the rental payment for 1989 , 1990, 1991 or 1992 be less than $15 ,000. In no event shall the rental payment for any year after 1992 be less than $18, 000 if no building is constructed as provided in the Schedule of Rental Payments, nor less than $15,000, if a building is constructed as provided in the Schedule of Rental Payments. 6. Paragraph 11 of the Lease and Agreement of October 29, 1956, as amended, is hereby amended by adding at the end thereof the following: -3- Notwithstanding the foregoing, American shall have the right to sublet the restaurant facility located on the leased premises without the consent of the City. 7. This amendment shall take effect at midnight on December 31, 1988 . City of Dubuque, Iowa American Marine of Iowa, Inc. by: L by: j-• � Jame . Brady, Mayor acid H. task its . �. r AMENDMENT TO LEASE AND AGREEMENT BETWEEN THE CITY OF DUBUQUE.IOWA AND DUBUQUE MARINA, INC. This Amendment to Lease and Agreement dated October 29, 1956, as amended, between the City of Dubuque, Iowa(City) and Dubuque Marina, Inc. (Marina) is made and entered into this 12 day of April 1999. WHEREAS, City and Marina entered into a Lease and Agreement dated October 29, 1956,which Lease and Agreement have been amended from time to time, including an Amendmeu:to Lease dated October 29, 1956 which granted to Marina an option to extend the Lease and Agreement to December 31, 2023; AND WHEREAS, Marina bas exercised its option to extend the Lease and Agreement to December 31, 2023; AND WHEREAS, City and Marina now desire to further amend the Lease and Agreement as set forth herein. NOW,THEREFORE,IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: L The term of the Lease and Agreement is hereby extended from December 31, 2023 to December 31,2028. 2.For the period commencing on January 1,2024 and ending on December 31, - 2028, the annual rent for the leased premises shall be at than current fair market rates as agreed by the parties or as determined by the following process. If the panties cannot agree to a fair market rental rate at least ninety(90)days prior to December 31,2023, they shall jointly appoint an MAI real estate appraiser to determine the market rent. If the parties cannot agree on an appraiser,each shall appoint its own IvIAl appraiser and the - two appointed by the parties shall select a thud. The average of the fair market rents determined by the three appraisers shall be the annual rent for the period commencing on January 1,2024 and ending on December 31,2028.The annual rem shall be paid in four equal installments by not later than October l of each year and by not later than January 1,April 1 and July 1 of the following year,the first such installment being not later than October l of 2024. 3. This amendment is conditioned upon and shall not take effect until the closing of the purchase of the assets of Dubuque Marina,Inc.by Keith Kana and Mary Wilhelm and after due execution and assignment of the Lease and Agreement by Dubuque Marina, Inc„ to Keith Kann and Mary Wilhelm.In the event that the sale of the assets of Dubuque Marina,Inc.to Keith Kann and Mary Wilhelm or the assignment of the Lease and Agreement fails to close by the 1 st day of May, 1999,then this amendment shall be of no force or effect 4.All other terms and conditions of the Lease and Agreement, as amended, shall remain in full.force and effect. - CITY O�DUBUQ ,IOWA D U A,INC. By/aTe ce M.Duggan, or It OE CAS GIOVAD[NI Attest By Mary avis, City Clerk Its - ASSIGNMENT OF LEASE The undersigned, Sandpiper, Inc. , an Iowa corporation, formerly known as Dubuque Marina, Inc. , an Iowa corporation, and Joe Castrogiovanni, individually, and only if a party to the leases individually does hereby sell, assign and transfer as part of an asset sale to M & K, Ltd. , an Iowa corporation, all right, title and interest in and to any and all leases, modifications and extensions thereof of any form or nature which they own wholly or partially naming them as tenants and the City of Dubuque, Iowa, as landlord, for all property and property rights for rental and utilization of the riverfront property at Eagle Point Ext . , Dubuque, Iowa, being utilized at this time as Dubuque Marina (this assignment relates to all property rights and lease rights of any form or nature owned by assignor for said real estate utilization) . With this assignment, M & K, Ltd. does hereby agree to assume all of the rights, duties and obligations under said lease or leases, modifications and extensions thereof and agrees to hold the Seller harmless for same. Buyer assignees, M & K, Ltd. , and Keith Kann and Mary Wilhelm, personally and as individuals, agree to be bound by the terms. The consideration for this assignment is a dollar amount to be allocated by Buyer's accountant to the subject matter of this agreement from the overall sale price that M & K, Ltd. is paying for the assets of Dubuque Marina, Inc. Both parties wild execute all documents and cooperate in all respects sufficient to have this assignment approved by the City of Dubuque so as to affectively convey and assign the leases, modifications and extensions thereof. Dated this 36day of 1999 . SANDPIPER, INC. , f/k/a Dubuque Marina, Inc. �J CASTR70 OVA4 QI, President M & K LTD. M & Ky LTD. KE H , Presid nt MARY WI •SSM, Sec. /Tres. • and personally and and per onally and as an individual as an individual STATE OF IOWA, COUNTY OF DUBUQUE, SS: On this 30th day of April, 1999, before me, the undersigned, a Notary Public in and for said State, personally appeared Joe Castrogiovanni, to me personally known, who being by me duly sworn, did say that he is the President, respectively, of the corporation executing the within and foregoing instrument, that no seal has been procured by the corporation; that the instrument was signed on behalf of the corporation by authority of its Board of Directors; and that Joe Castrogiovanni as an Officer acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the corporation, by it and by him voluntarily executed. Notary Public in and i6r said State STATE OF IOWA, COUNTY OF DUBUQUE, ss: On this 30th day of April, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Keith J. Kann and Mary J. Wilhelm, to me personally known, who being by me duly sworn, did say that they are President and Secretary/Treasurer, respectively, of the corporation executing the within and foregoing instrument to which this is attached, that no seal has been procured by the corporation; that said instrument was signed on behalf of the corporation by authority of its Board of Directors; and that Keith J. Kann and Mary J. Wilhelm, as officers, acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the corporation, by it and by them voluntarily executed. zA 44'� Nota Public in and for id State LANDLORD'S CONSENT TO ASSIGNMENT The City of Dubuque, Iowa, hereby consents to the foregoing Assignment of Lease. Dated: CITY OFCUE, IOWA DU By: D. 44 Roy D. Bobl, Mayor Attest: Kevifi S. Fimstiflhl, Assistant City-Clerk FdUSERS%tsteckleWndahMubuque Marinall.andlord'sConsenlTahssignment_05D608.doc