Dubuque Ice & Recreation Center_Disposing of Property_Staff DocumentsTHE CITY OF Dubuque
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Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Development Agreement Between and Among the City of Dubuque, Iowa,
Dubuque Ice & Recreation Center, Inc., Dubuque Racing Association,
Ltd., and Battlefield Dubuque, LLC
and
Lease Agreement Between the City of Dubuque, Iowa and Dubuque Ice &
Recreation Center, Inc.
DATE: October 1, 2009
City Attorney Barry Lindahl and Leisure Services Manager Gil Spence have been
working with the Dubuque Ice & Recreation Center (DICE), Battlefield Dubuque, LLC,
the Dubuque Racing Association and Vision Iowa to create a much larger ice arena on
the City site on Schmitt Island.
The parties have successfully come to an agreement to expand the planned ice arena
from 500 seats to 3,200 seats, and make it home to a new United States Hockey
League (USHL) team, replacing the Dubuque Thunderbirds.
The additional cost of the expanded facility of just over $3.2 million will be provided by
the owners of the USHL Hockey Franchise, Battlefield, LLC. Also, in addition to the $1
million the Dubuque Racing Association had in the project, they will contribute an
additional $300,000 to build additional parking and put lighting in the City's existing
parking lot.
The City will have no additional financial obligations over the $50,000 the City already
agreed to contribute, the funds to pave the City's existing parking lot and the $1 per
year 25-year land lease. However, the City is agreeing to do the following:
1. Expand the area of the land lease for the larger building and the additional
parking. This will eliminate the rugby fields.
2. Move up the planned paving of the City parking lot to Fiscal Year 2011, from
Fiscal Year 2013.
3. Eliminate ice at Five Flags so that DICE can use some of that equipment to avoid
some costs in their new facility
To ensure that the Five Flags annual deficit does not increase with the loss of ice, I am
recommending that the clause in the SMG Five Flags Management contract that
prohibits Five Flags from competing for certain special events, except for national
political events, be eliminated from the SMG contract. With decreased operating costs,
decreased capital expenses and increased special event revenue, this causes an
almost break-even in year one and a better profit than ice by year three.
The Grand River Center opened in October 2003. The management firm for the Grand
River Center had asked for three to five years of no compete from Five Flags as it took
them time to fill their schedule with conventions and special events and made event
planners aware of their existence. That time has long since passed.
The Development Agreement includes:
The City will lease the property to DICE pursuant to the Lease Agreement for a
term of twenty-five (25) years.
2. DICE will construct on the property the ice arena for a total cost of approximately
$6.276 Million.
3. Construction shall commence within forty-five (45) days of the October 15, 2009
closing date and shall be substantially completed within nine (9) months after the
commencement of construction.
4. Although the City will own the arena, the City will not incur any costs related in
any way to the design, construction, or operation of the arena.
5. During the term of the lease, the City will not enter into any agreement to operate
another indoor ice facility on property owned by or under the control of the City
and will no longer operate the ice facility at Five Flags Civic Center.
6. DRA agrees to contribute to DICE the sum of $1 Million for the construction of
the arena and to provide funds not to exceed $300,000.00 for parking
improvements.
7. Battlefield agrees to contribute $3.2 Million to DICE for the construction of the
arena. DICE and Battlefield have entered into an Arena Usage Agreement for
the arena. DICE has entered into a Management Agreement with Southwood
Management, LLC for the management of the arena.
8. An Arena Advisory Board comprising the Chairperson of the DICE Board of
Directors, the President and CEO of the DRA, the Chairperson of the Battlefield
Board of Governors, the City Manager, and the President of Dubuque Youth
Hockey, will advise and make non-binding recommendations to the DICE Board
of Directors and the arena manager for such things as capital improvements and
expenditures, establishing facility rules and regulations, and providing a voice for
all stakeholders using the arena. The Board shall determine the master schedule
for the facility.
At one time Dubuque had USHL Hockey, one level of hockey higher than the Dubuque
Thunderbirds, in the Dubuque Fighting Saints. USHL Hockey has grown and matured
since that time.
The USHL has teams in Chicago; Des Moines; Cedar Rapids; Sioux City; Waterloo;
Fargo, North Dakota; Green Bay, Wisconsin; Indianapolis, Indiana; and Youngstown,
Ohio.
The USHL celebrates its 31St season of junior hockey in 2009-2010, with over 180
players already committed to NCAA Division I schools during the 2008-2009 campaign,
and 17 NHL draft picks that played in the league this past season. The USHL is the
nation's foremost producer of junior hockey talent. The USHL Fall Classic is one of the
most highly scouted events in all of hockey, as each team will play in front of scouts
from every NHL Club and Division I college hockey program.
I respectfully recommend that the Mayor and City Council set a public hearing for
October 5, 2009 to consider the Dubuque Ice & Recreation Center Development
Agreement and Lease Agreement.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gil Spence, Leisure Services Manager
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the~ississippi
BARRY LINC
CITY ATTOR EY
To: Mich~l C. Van Milligen
City Manager
DATE: October 1, 2009
RE: Development Agreement Between and Among the City of Dubuque, Iowa,
Dubuque Ice & Recreation Center, Inc., Dubuque Racing Association,
Ltd., and Battlefield Dubuque, LLC
and
Lease Agreement Between the City of Dubuque, Iowa and Dubuque Ice &
Recreation Center, Inc.
Attached is a Resolution Disposing of Real Property pursuant to a development
agreement and lease of property located on Schmitt Island for the construction of an ice
area. Also attached is the proposed Development Agreement and proposed Lease
Agreement.
Dubuque Ice & Recreation Center, Inc., an Iowa Corporation (DICE), has requested that
the City lease to DICE certain real property so that DICE may construct on the property
an ice arena. Dubuque Racing Association, Ltd. (DRA) has agreed to contribute funds
to the project. Battlefield Dubuque, LLC, (Battlefield), a Minnesota Limited Liability
Company, has also agreed to contribute funds for the construction of the arena and to
enter into an agreement with DICE for the use of the arena. Significant terms of the
Development Agreement are the following:
1. The City will lease the property to DICE pursuant to the Lease Agreement for a
term of twenty-five (25) years.
2. DICE will construct on the property the ice arena for a total cost of approximately
$6.276 Million.
3. Construction shall commence within forty-five (45) days of the October 15, 2009
closing date and shall be substantially completed within nine (9) months after the
commencement of construction.
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org
4. Although the City will own the arena, the City will not incur any costs related in
any way to the design, construction, or operation of the arena.
5. During the term of the lease, the City will not enter into any agreement to operate
another indoor ice facility on property owned by or under the control of the City
and will no longer operate the ice facility at Five Flags Civic Center.
6. DRA agrees to contribute to DICE the sum of $1 Million for the construction of
the arena and to provide funds not to exceed $300,000.00 for parking
improvements.
7. Battlefield agrees to contribute $3.2 Million to DICE for the construction of the
arena. DICE and Battlefield have entered into an Arena Usage Agreement for
the arena. DICE has entered into a Management Agreement with Southwood
Management, LLC for the management of the arena.
Elevations showing the proposed arena are attached to this Memorandum.
Section 8 of the Development Agreement has been revised since the September 21,
2009 City Council meeting. Revised Section 8 provides:
SECTION 8. ARENA MANAGEMENT AGREEMENT
8.1. Management Agreement. Prior to the Closing, DICE shall enter into
the Management Agreement with Southwood Management, LLC
(Southwood Management) in the form attached hereto as Exhibit F. The
Management Agreement may not be modified in any way without the prior
written consent of City.
8.2 Arena Advisory Board. The Arena Advisory Board is a select group
of stakeholders whose function shall be to advise and make non-binding
recommendations to the DICE Board of Directors and the Arena Manager.
The Arena Advisory Board shall among other things, suggest capital
improvements and expenditures, determine the master schedule for the
Arena, assist in establishing Facility Rules and Regulations, and provide a
voice for all stakeholders using the Arena. The Arena Advisory board
shall be comprised of the following five (5) members:
A) Chairperson of the DICE Board of Directors, or designee;
B) President and CEO of the DRA, or designee;
C) Chairperson of the Battlefield Board of Governors, or designee;
D) City of Dubuque City Manager, or designee;
E) President of Dubuque Youth Hockey or designee
8.3 Public Use Priority. The priority use of the Arena is for public
skating and all other uses are secondary in nature. Other than the specific
dates and times agreed to in the Ice Usage Agreement between DICE and
Battlefield, the arena shall be scheduled for, and open to, public uses
including, but not limited to, public skate, learn to skate, youth hockey,
figure skating, broomball, adult hockey, birthday parties and similar ice-
related activities.
Southwood Management will conduct a master scheduling meeting each
year on or about August 1St. Southwood Management's role is the role of
coordinator of the meeting only. At this meeting representatives from all
interested ice user groups will select dates and times for their activities.
Once the schedule is completed, Southwood Management will forward the
schedule to the Arena Advisory Committee for approval. Southwood
Management will publish the approved schedule and maintain said
schedule for all parties involved.
If an organization wishes to use the facility for a special event, be it ice or
non-ice use, the organization will be required to complete an event
request form. This form will be forwarded to the Arena Advisory
Committee for their approval a minimum of 60 days prior to the event.
The 60 day minimum can only be waived by the affected group. Before
approving any changes in the facility master schedule the Arena Advisory
Committee will consult with the user that is being displaced to determine if
a hardship will occur. Special events are defined as any event that
necessitates the covering of the ice surface, installing a stage or utilizing
the ice surface for a professional performance similar in nature to a Disney
on Ice type production. Special Events will be limited to no more than 6
times per year.
I recommend that the Resolution, Development Agreement and Lease Agreement be
submitted to the City Council for consideration at the October 5, 2009 City Council
meeting.
BAL:tIs
Attachment
cc: Cindy Steinhauser, Assistant City Manager
Gil Spence, Leisure Services Manager
F:\USERS\tsteckle\Lindahl\Dubuque Community IceWIVM_DevAgreement&LeaseAgreement_100109.doc
Preparers Barry A. Lindahl, Esq. Address: Suite 330, 300 Main Street, Dubuque, IA 52001 Telephone: (563) 583-4113
RESOLUTION NO. 391-09
DISPOSING OF AN INTEREST IN REAL PROPERTY BY DEVELOPMENT
AGREEMENT BETWEEN AND AMONG DUBUQUE ICE & RECREATION CENTER,
INC., DUBUQUE RACING ASSOCIATION, AND BATTLEFIELD DUBUQUE, LLC AND
LEASE AGREEMENT WITH DUBUQUE COMMUNITY ICE & RECREATIONAL
CENTER, INC.
WHEREAS, the City of Dubuque, Iowa (City) is the owner of the following
described real estate (the Property):
A part of Mineral Lots 298 and 299 in Fractional Section 19, T89N, R3E,
5th P.M., in the City of Dubuque, Iowa, containing 6.63 acres, more or
less, subject to easements of record and not of record;
and
WHEREAS, Dubuque Community Ice & Recreational Center, Inc. (DICE), an
Iowa Corporation, desires to lease a part of the Property shown on Exhibit A-1 attached
hereto for the construction and operation of an ice arena (the Arena) as described in a
Development Agreement and Lease Agreement now on file at the office of the City
Clerk, 50 West 13t" Street, Dubuque, Iowa; and
WHEREAS, Dubuque Racing Association, LTD (DRA) has agreed to enter into
the Development Agreement and contribute to the funds required by DICE for the
construction of the Arena; and
WHEREAS, Battlefield Dubuque, LLC (Battlefield), a Minnesota limited liability
company, has agreed to entered into the Development Agreement and contribute to the
funds required by DICE for the construction of the Arena and to enter in an agreement
with DICE for the use of the arena; and
WHEREAS, the City Council of the City of Dubuque has found that the
development of the Property pursuant to the Development Agreement and Lease
Agreement, and the fulfillment generally of the Development Agreement and Lease
Agreement, are in the vital and best interests of City and in accord with the public
purposes and provisions of the applicable federal, state and local and
WHEREAS, on October 5, 2009, the City Council pursuant to notice published as
required by law held a public hearing on its intent to dispose of the foregoing interest in
the Property and overruled all objections thereto; and
WHEREAS, the City Council finds that it is in the best interest of the City to approve
the disposition of such interest in the Property.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City Council of the City of Dubuque approves the disposition of the
City's interest in the foregoing-described Property pursuant to the Development
Agreement and Lease Agreement.
Section 2. The Mayor is hereby authorized and directed to sign this Resolution and
the Development Agreement and Lease Agreement in accordance with their terms.
Passed, approved and adopted this 5th day of October, 2009.
;~
Roy D. ~; uol, Mayor
~ ;
Aftest: Jeanne F. Schneider, City Clerk
F:\USERS\tsteckle\Lindahl\Dubuque Community Ice\ResolutionDisposinglnterest_092909.doc
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NOTICE OF A PUBLIC
HEARING OF THE
CITY COUNCIL OF
THE CITY OF
DUBUQUE, IOWA, ON
THE MATTER OF THE
INTENT TO DISPOSE
OF AN INTEREST IN
REAL PROPERTY BY
DEVELOPMENT
AGREEMENT
BETWEEN AND
AMONG DUBUQUE
ICE & RECREATION
CENTER, INC.,
DUBUQUE RACING
ASSOCIATION, AND
BATTLEFIELD
DUBUQUE, LLC AND
LEASE AGREEMENT
WITH DUBUQUE
COMMUNITY ICE &
is
the
nolo a punuc nearing
on the 5th day of Octo-
ber, at 6:30 p.m. in the
Historic Federal Build-
ing, 350 West Sixth
Street, Dubuque, Iowa,
at which meeting the
City Council proposes
to dispose of an inter-
est in the following de-
scribed real property
by Development Agree-
ment between and
among Dubuque Ice &
Recreation Center, Inc.,
Dubuque Racing Asso-
ciation, and Battlefield
Dubuque, LLC and
lease agreement with
Dubuque Community
Ice & Recreation Cen-
ter. Inc.
the
more
At the meeting, the
City Council will re-
ceive oral and written
objectionsfrom any
resident or property
owner of said City to
con-
est in
above,
the
Agreement, or will
abandon %e'proposal.
By order of the City
Council said hearing
and appeals there from
shall be held in accord-
ance with and gov-
erned by the provisions
of Section 403.9 of the
Code of Iowa.
This notice is given by
order of the City Coun-
cil of the City of Dubu-
que, Iowa, as provided
by Chapter 403 of the
Code of Iowa.
Dated this 25th day of
September, 2009.
Jeanne F. Schneider,
CIVIC, City Clerk
It 9/25
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa
corporation, publisher of the Telegraph Herald,a newspaper of general circulation
published in the City of Dubuque, County of Dubuque and State of Iowa; hereby
certify that the attached notice was published in said newspaper on the following
dates: September 25, 2009, and for which the charge is $25.77.
Subscribed to before me, a N ary ublic in and for Dubuque County, Iowa,
this �9i� day of 20.
Public in and for Dubuque County, Iowa.
6
MARY K. WESTERMEYER
P� Commission Number 154885
..My comet. Exp. I�E6_ t, �011