Iowa Greyhound Association Lease Amendment Copyrighted
September 4, 2018
City of Dubuque Consent Items # 6.
ITEM TITLE: lowa Greyhound Association Lease Amendment
SUMMARY: City Manager recommending approval of an Amendment to
Lease Agreement with lowa Greyhound Association that
provides for a five-year term commencing January 1, 2020.
RESOLUTION Approving an Amendment to Lease
Agreement between the City of Dubuque, lowa and lowa
Greyhound Association
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
lowa Greyhound Association Lease Amendment-NNM City Manager Memo
Memo
Staff Memo Staff Memo
Resolution Resolutions
Amendment Supporting Documentation
THE CITY OF Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amendment to Lease Agreement Between the City of Dubuque and lowa
Greyhound Association
DATE: August 29, 2018
The City of Dubuque, lowa, and lowa Greyhound Association entered into a Lease
Agreement dated November 17, 2014, for the dog racing facilities at the Greyhound
Park & Mystique Casino (now Q Casino). The Initial Term of the Lease Agreement was
for five years commencing on January 1 , 2015, and provided for a single option to
renew for an additional five years. As required by state law, rent for the Demised
Premises was in the amount of$1 .00 per year on January 1 , 2015, and on the first day
of January of each year thereafter during the Initial Term. The legislation also required
a second five-year lease term at "market rate".
City Attorney Crenna Brumwell recommends City Council approval of an Amendment to
Lease Agreement with lowa Greyhound Association that provides for a five-year term
commencing January 1 , 2020, with an annual rent of$58,000 per year, which will be
adjusted each year of the Lease based on the percentage increase in the cost of living.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen �� �
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Jenny Larson, Budget Director
Prepared by Crenna M Brumwell 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
RESOLUTION NO. 257-18
APPROVING AN AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF
DUBUQUE, IOWA AND IOWA GREYHOUND ASSOCIATION
Whereas, the City of Dubuque, Iowa and Iowa Greyhound Association entered
into a Lease Agreement dated for reference purposes the 17th day of November, 2014;
and
Whereas, in Section 1.1(1) of the Lease Agreement, the parties agreed to an Initial
Term of five years commencing on the first day of January, 2015 and ending on the 31st
day of December, 2019; and
Whereas, in Section 1.1(2) of the Lease Agreement, the parties agreed to annual
rent of $1.00 per year on January 1, 2015 and on the first day of January of each year
thereafter during the Initial Term; and
Whereas, Section 1.2 of the Lease Agreement provided Lessee with a single
option to renew the Lease for an additional five years commencing on the 1st day of
January, 2020; and
Whereas, the parties wish to now provide Lessee an option to terminate the Lease;
and
Whereas, the parties now agree to amend the Lease Agreement as set forth in the
attached Amendment to Lease Agreement; and
Whereas, the City Council believes it is in the best interests of the City of Dubuque
to approve the Amendment to Lease Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF DUBUQUE,
IOWA AS FOLLOWS:
Section 1. The Amendment to Lease Agreement between the City of Dubuque
and Iowa Greyhound Association attached hereto is hereby approved.
Passed, approved and adopted this 4th day of Septeplber 2018.
Attest:
Ite p
Kevi S. Firnstahl, City lerk
Dz.
Roy b. Bt T, Mayor
F:\Users\tsteckle\Lindahl\Iowa Greyhound Lease Agreement\ResolutionApprovingtAmendmentToLeaseAgreement082718.docx
THE CTTY OF Dubuque
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CRENNA M . BRUMWELL , ESQ.
CITY ATTORNEY
To: Michael C. Van Milligen
City Manager
Dare: August 27, 2018
Re: Amendment to Lease Agreement Between the City of Dubuque and lowa
Greyhound Association
The City of Dubuque, lowa and lowa Greyhound Association (IGA) entered into a Lease
Agreement dated November 17, 2014 for the dog racing facilities at the Greyhound Park
& Mystique Casino (now Q Casino).
The Initial Term of the Lease Agreement was for five years commencing on January 1,
2015 and provided for a single option to renew for an additional five years. As required
by state law, rent for the Demised Premises was in the amount of $1 .00 per year on
January 1, 2015 and on the first day of January of each year thereafter during the Initial
Term. The legislation also required a second five-year lease term at "market rate".
The attached Amendment to Lease Agreement provides that the City leases to IGA the
Demised Premises for a term of five years commencing on the 1�� day of January, 2020
at an annual rent of $58,000 per year, which will be adjusted each year of the Lease
based on the percentage increase in the cost of living. As with the original Lease, IGA
must maintain a certain number of live race days during racing season or the City may
terminate the lease on the following January 1�. The Amendment also gives Lessee the
option to terminate the Lease provided Lessee gives Lessor not less than ten months
prior written notice to terminate.
I recommend that the Resolution approving the Amendment to Lease Agreement be
submitted to the City Council for consideration and approval.
CMB:tIs
Attachment
cc: Barry A. Lindahl, Senior Counsel
F:\Users\tsteckle\Lindahl\lowa Greyhound Lease Agreement\MVM_ResolutionApprovingFirstAmendmentToLeaseAgreement_082718.docx
OFFICE OF THE CITYATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563)589-4381 /Fnx (563)583-1040/Ennni� cbrumwel@cityofdubuque.org
Masterpiece on the Mississippi
MEMORANDUM
CRENNA M. BRUMWELL, ESQ.
CITY ATTORNEY
To:
DATE:
Kevin Firnstahl
City Clerk
September 6, 2018
RE: Amendment to Lease Agreement — City of Dubuque and Iowa Greyhound
Association
Kevin, attached for your file is the original fully executed Amendment to Lease Agreement
between the City of Dubuque and Iowa Greyhound Association, dated September 4,
2018. I have scanned a copy to Jerry Crawford.
We will retain a copy in our file.
Thank you.
CMB:tls
Attachment
F:\Users\tsteckle\Lindahl\Iowa Greyhound Lease Agreement\Firnstahl_AmendmentTolowaGreyhoundLeaseAgreement_090618.docx
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
AMENDMENT TO LEASE AGREEMENT
This Amendment to Lease Agreement (hereinafter "Amendment") is made this '-day of
C,.-? ,/-g/i/Zfll-,- 2018, by and between. the City of Dubuque, an Iowa municipal corporation
(hereinafter "Lessor") and Iowa Greyhound Association, an Iowa not for profit corporation (hereinafter
"Lessee").
Witnesseth:
WHEREAS, Lessor and Lessee are the parties to a Lease Agreement dated November 17,
2014, a copy of which is attached hereto; and.
WHEREAS, the parties by this Amendment desire and intend to amend certain provisions
of the Lease Agreement as hereinafter set forth.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Lessor and Lessee hereby agree as follows:
1. Effective January 1, 2020, Section 1 of the Lease Agreement is hereby deleted in
its entirety and the following placed in its stead:
{0247
8
OCX}
SECTION 1. DEMISE AND TERM; RENT.
.1 Term.
(1) In consideration of the rents hereinafter reserved and the terms,
covenants, conditions and agreements set forth in this Lease, Lessor
hereby leases to Lessee the Demised Premises, subject to any
easements and restrictions of record, for a Term of five years
commencing on the 1' day of January, 2020, and ending on the 31'
day of December, 2025, subject to all of the terms, covenants,
conditions and agreements contained herein so long as no fewer than
ninety-five (95) live race days with nine (9) live races per day during
each racing season occur. Lessor may terminate this Lease as it
pertains to the portion of the Demised Premises utilized for live racing
on January .1 of the year following the calendar year in which such live
dog racing was not conducted by Lessee.
(2) Lessee must pay Lessor (in addition to taxes, fees, assessments, and
other charges required to be paid under this Lease by Lessee) rent for
the Demised Premises an annual base rent in the amount of $58,000.00
per year on January 1, 2020, and on the first day of January each year
thereafter during the Term. The annual base rent shall be adjusted each
year of this Lease based upon the percentage increase in the cost of
living (utilizing the CPI -U) in relation to the initial annual base rent.
1.2 Lessee Option to Terminate.
(1) Lessee shall have the option to terminate this Lease effective as of the
last day of any calendar year (the "Termination Date") provided
Lessee gives Lessor not less than ten (10) months prior written notice
to terminate. As of the Termination Date: (a) all amounts payable by
Lessor under this Lease shall be paid through the Termination Date;
(b) neither party shall have any rights, liabilities or obligations under
the Lease for the period accruing after the Termination Date, except
those which, by the provisions of this Lease, expressly survive the
termination of the Lease; and (c) Lessor shall surrender the Demised
Premises in the condition required under the Lease.
1.3 Lessee acknowledges and agrees that it is the intent of the parties that
Lessor must not incur any costs related in any way to the financing,
purchase, lease or operation of the Demised Premises which are not paid
for or reimbursed by Lessee as rent or otherwise.
2. CONTINUING EFFECT: Except as amended above all other terms and conditions
of the Lease Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Lease
Agreement as of the date set forth herein above.
TIIE CITY OF D t,. UQUE
By:
Attest:
Roy D. Bu►'`, Mayor
Ke1v n S. Firnstahl, City Clerk
LESSOR
{024771 s6.DOCK}
IOWA GREYHOUND ASSOCIATION
LESSEE