Chamber of Comm Loan AgreeMEMORANDUM
July 1, 2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Dubuque Area Chamber of Commerce Loan Agreement
Finance Director Ken TeKippe is recommending City Council approval of a $350,000
loan agreement between the City of Dubuque and the Dubuque Area Chamber of
Commeme. The loan was approved dudng the Fiscal Year 2004 budget process by the
City Council at the February 27, 2003 meeting to support the marketing efforts of the
America's River project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Ken TeKippe, Finance Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
FROM:
Michael C. Van Milligen, City Manager
Ken TeKippe, Finance Director ~
SUBJECT: Dubuque Area Chamber of Commerce Loan Agreement
DATE: June 30, 2003
A $350,000 loan agreement between the City of Dubuque and the Dubuque Area
Chamber of Commeme is submitted for City Council approval. The loan was approved
during the FY 2004 budget process by the City Council at the February 27, 2003
meeting to support the marketing efforts of the America's River project. A resolution
authorizing the loan is also provided. Barry Lindahl, Corporation Counsel, has reviewed
the wording on the loan agreement and resolution. Representatives of Dubuque Area
Chamber of Commerce have signed the loan agreement after approval at their recent
board meeting.
Your submission to the City Council would be appreciated and allow the process of
advancing the funds to the Dubuque Area Chamber of Commerce to be initiated. If you
have any questions on this issue, let me know. Thank you for your assistance.
KT/jg
Enclosures
RESOLUTION NO. 224-03
APPROVING A LOAN AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA
AND THE DUBUQUE AREA CHAMBER OF COMMERCE FOR LOAN FUNDS FOR
THE START-UP MARKETING EFFORT BY THE CONVENTION AND VISITORS
BUREAU FOR THE AMERICA'S RIVER PROJECTS
Whereas, the Dubuque Area Chamber of Commerce through its Convention and
Visitors Bureau provides services to grow the tourism and convention industry in
Dubuque; and
Whereas, the Dubuque Area Chamber of Commerce through its Convention and
Visitors Bureau has proposed to the City of Dubuque a marketing effort for America's
River projects; and
Whereas, it is in the interest of the City of Dubuque to allow the proposed
marketing to proceed; and
Whereas, to allow the proposed marketing to proceed and to accommodate
budget restrictions, the City of Dubuque has agreed to loan $350,000 to the Dubuque
Area Chamber of Commerce to pay for the start-up marketing effort, such funds to be
available for distribution after July 1, 2003, pursuant to the terms of a Loan Agreement,
attached hereto; and
Whereas, the Dubuque Area Chamber of Commerce has agreed to repay the full
amount of the loan upon the terms set forth in the Loan Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Loan Agreement attached hereto is hereby approved. The
Mayor is hereby authorized and directed to sign the Loan Agreement on behalf of the
City of Dubuque.
Section 2. The City Manager is hereby authorized and directed to administer the
Loan Agreement on behalf of the City.
Passed, approved and adopted this 7th day of June, 2003.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, CMC, City Clerk
7th day of June, 2003.
LOAN AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
THE DUBUQUE AREA CHAMBER OF COMMERCE
Whereas, the Dubuque Chamber of Commerce (Chamber) through its Convention
and Visitors Bureau has proposed to the City of Dubuque a marketing effort for
America's River projects; and
Whereas, it is in the interest of the City of Dubuque (City) to allow the proposed
marketing to proceed; and
Whereas, to allow the proposed marketing to proceed and to accommodate budget
restrictions, City has agreed to loan $350,000 to Chamber to pay for the start-up
marketing effort, such funds to be available for distribution after July 1,2003, pursuant
to the terms set forth herein.
NOW, THEREFORE IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
City agrees to loan $350,000 to Chamber for use by its Convention and Visitors
Bureau. The loan funds shall be used for the start-up marketing effort for America's
River projects and shall be available for distribution after July 1, 2003.
Chamber shall repay the full amount of $350,000 to City on or before July 31, 2013.
No interest shall be charged on the loaned funds. The funds shall be paid back to
City in ten installments of $35,000.00 over a 10-year period by reducing City's
payment of Hotel/Motel taxes to Chamber by that amount. The annual reduction in
taxes shall begin with the July, 2004 distribution and end with the July, 2013
distribution. Should Chamber, for any reason, cease to perform CVB services, the
above repayment obligation shall cease effective on the prior June 30th
3. Chamber shall not use the above sums for the acquisition of real or personal
property.
4. This agreement shall be administered by City's City Manager.
Approved by resolution of the Dubuque/~~ o~e
26th day of June, 2003.
"~'te~v~-d Sandstrom, President and CEO
Attest: Dan K,use, C~e Board /2/~'/'~/
Page 1 of 2
LOAN AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
. . AND
THE DUBUQUE AREA CHAMBER OF COMMERCE
Approved by resolution of the City Council of the City of Dubuque ado tad on the 7th
day of July, 2003. .
~~
eanne F. Schneider, CMC, City Clerk
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