Second Amendment to Lease Agreement with Iowa Greyhound Association (IGA)_InitiateCity of Dubuque
City Council Meeting
Copyrighted
October 18, 2021
Items to be set for Public Hearing # 1.
ITEM TITLE: Second Amendment to Lease Agreement Between the City of Dubuque
and Iowa Greyhound Association
SUMMARY: City Manager recommending the City Council set a public hearing for
November 1, 2021, to approve the Second Amendment to Lease
Agreement between the City of Dubuque and Iowa Greyhound
Association that modifies the end date of the lease from December 31,
2025 to July 31, 2022.
RESOLUTION I ntent to dispose of an interest in real property by
Second Amendment to Lease Agreement with Iowa Greyhound
Association
SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for November
DISPOSITION: 1, 2021 Suggested Disposition:
ATTACHMENTS:
Description Type
Iowa Greyhound Association Second Amendment to City Manager Memo
Lease-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
Second Amendment Supporting Documentation
Notice of Public Hearing Supporting Documentation
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Second Amendment to Lease Agreement Between the City of Dubuque
and Iowa Greyhound Association
DATE: October 13, 2021
The City of Dubuque, Iowa and Iowa 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).
City Attorney Crenna Brumwell recommends the City Council set a public hearing for
November 1, 2021, to approve the Second Amendment to Lease Agreement between
the City of Dubuque and Iowa Greyhound Association that modifies the end date of the
lease from December 31, 2025 to July 31, 2022.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
THE CITY OF
DUBbE
Masterpiece on the Mississippi
CRENNA M. BRUMWELL, EsQ.
CITY ATTORNEY
To: Michael C. Van Milligen
City Manager
DATE: October 12, 2021
Dubuque
AII•Anerlca City
2007-2012
2013.2017
RE: Second Amendment to Lease Agreement Between the City of Dubuque and
Iowa Greyhound Association
The City of Dubuque, Iowa and Iowa 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).
An Amendment was done at the end of the original lease term to extend lease through
2025. The parties have since negotiated a Second Amendment to the Lease Agreement
which modifies the end date of the lease from December 31, 2025 to July 31, 2022.
I recommend that the matter be scheduled for public hearing on November 1, 2021 to
approve the Second Amendment to Lease Agreement.
Attachment
cc: Barry A. Lindahl, Senior Counsel
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 Brumwell 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
RESOLUTION NO. 360-21
INTENT TO DISPOSE OF AN INTEREST IN REAL PROPERTY BY SECOND
AMENDMENT TO LEASE AGREEMENT WITH IOWA GREYHOUND ASSOCIATION
WHEREAS, the City of Dubuque, Iowa (City) owns certain property currently leased
to the Iowa Greyhound Association; and
WHEREAS, City and IGA desire to amend the existing Lease Agreement, as
amended; and
WHEREAS, the City Council of the City of Dubuque believes it is in the best interests
of the City of Dubuque to approve the Second Amendment to the Lease Agreement.
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, Iowa, intends to dispose of the
City's interest in the foregoing -described real property pursuant to the Second Amendment
to the Lease Agreement between City and Iowa Greyhound Association, a copy of which
is now on file at the Office of the City Clerk, City Hall, 13th and Central Ave., Dubuque,
Iowa.
Section 2. The City Clerk is hereby authorized and directed to cause this Resolution
and a Notice to be published as prescribed by Iowa Code § 364.7 of a public hearing on
the City's intent to dispose of the foregoing -described real property, to be held on the 1st
day of November, 2021, at 6:30 p.m. in the City Council Chambers at the Historic Federal
Building, 350 W. 6th Street, Dubuque, Iowa
Passed, approved and adopted this 18th day of October, 2021.
X, P XL
Roy D. ol, Mayor
Attest:
Adrienne N. Breitfelder, Ci y Clerk
SECOND AMENDMENT TO SUBLEASE AGREEMENT BETWEEN THE CITY OF
DUBUQUE AND
IOWA GREYHOUND ASSOCIATION
This Second Amendment to the Lease Agreement (hereinafter "2nd Amendment") is made
effective on the 1st day of November 2021, by and between the City of Dubuque, an Iowa
municipal corporation (hereinafter "City"), and the Iowa Greyhound Association, LLC, an Iowa
nonprofit corporation (hereinafter "the Iowa Greyhound Association"). This 2nd Amendment
supersedes and replaces all prior Amendments to the Sublease (as hereinafter defined).
Witnesseth:
WHEREAS, the City and the Iowa Greyhound Association are the parties to a Lease
Agreement dated November 17, 2014, a copy of which is attached hereto (the "Lease");
WHEREAS, the City and the Iowa Greyhound Association entered into an Amendment to
Lease Agreement on September 4, 2018; and
WHEREAS, the parties by this amendment desire and intend to amend certain provisions
of the Lease and to replace all prior Amendments as hereinafter set forth.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the City and the Iowa Greyhound Association, hereby agree as
follows:
1. AMENDMENT OF SECTION 1 OF THE LEASE: Effective as of January 1, 2021,
Section 1 of the Lease is hereby deleted in its entirety and the following placed in its stead:
SECTION 1. DEMISE AND TERM; RENT.
1.1 Term
(1) In consideration of the rents hereinafter reserved and the terms, covenants,
conditions and agreements set forth in this Lease, the City hereby Lease to the Iowa
Greyhound Association the Lease Premises, subject to any easements and
restrictions of record, for a Term commencing on January 1, 2021, and ending on
the July 31, 2022 (the "Termination Date"), subject to all the terms, covenants,
conditions and agreements contained herein.
(2) The Iowa Greyhound Association shall pay the City (in addition to taxes, fees,
assessments and other charges required to be paid under this Lease by the Iowa
Greyhound Association through the Termination Date) rent for the Leased Premises
as follows: base rent in the amount of Fifty Eight Thousand Dollars ($58,000.00)
for the period from January 1, 2021, through December 31, 2021; and base rent in
the amount of Twenty Nine Thousand Dollars ($29,000.00) for the period from
January 1, 2022, through the Termination Date. The base rent shall be due and
payable in advance on or before January 1 of each year.
Page 1 of 4
1.2 As of the Termination Date: (a) all amounts payable by the Iowa Greyhound
Association under this Lease shall be paid through the Termination Date; (b) the Iowa
Greyhound Association shall provide evidence satisfactory to the City that all liens or
encumbrances on the Iowa Greyhound Association's leasehold interest in the Leased
Premises, if any, have been terminated and/or released; (c) neither party shall have any
rights, liabilities or obligations under this Lease for the period accruing after the
Termination Date, except those which, by the provisions of this Lease, expressly survive
the termination of this Lease, and (d) the Iowa Greyhound Association shall surrender the
Subleased Premises in the condition required under this Lease.
1.3 The Iowa Greyhound Association acknowledges and agrees that (a) it is the intent
of the parties that the City must not incur any costs related in any way to the financing,
purchase, lease or operation of the Leased Premises which are not paid for or reimbursed
by the Iowa Greyhound Association as rent or otherwise and (b) the City must not incur or
bear any cost or expense arising out of the termination or cancelation of this Lease.
2. AMENDMENT OF SECTION 2 (4) OF THE SUBLEASE: Effective as of January 1,
2021, Section 2(4) of the Lease is hereby deleted in its entirety and the following placed in its
stead:
(4) Live dog racing requirements. The Iowa Greyhound Association must conduct
no fewer than ninety-five (95) live race days with nine (9) live races per day
during the 2021 racing season and no fewer than sixteen (16) live race days with
nine (9) live races per day during the 2022 racing season, with the last live racing
day to occur on or before May 31, 2022. In addition, the Iowa Greyhound
Association must ensure that at least one employee or representative remains on
the Leased Premises for a period of sixty (60) days after the last live racing day
in order to pay out winnings on wagers placed on the last live racing day. The
City may, in its sole discretion, terminate this Lease with sixty (60) days'
advance notice in the event that the Iowa Greyhound Association informs the
Iowa Racing and Gaming Commission and/or the City that the Iowa Greyhound
Association no longer intends to conduct the required minimum number of live
dog races during any racing season or the City demonstrates to the satisfaction
of the Iowa Racing and Gaming Commission that the minimum number of live
dog races will not be conducted during any racing season.
3. AMENDMENT OF SECTION 23 TO THE LEASE: Effective as of January 1, 2021,
Section 23 of the Lease is hereby deleted in its entirety and the following placed in its stead:
SECTION 23. SURRENDER.
(1) The Iowa Greyhound Association must, upon the earliest to occur of the Termination Date
or any termination of this Lease, surrender and deliver up the Leased Premises, with the
Improvements and fixtures then located thereon into the possession and use of the City,
Page 2 of 4
without fraud or delay and in good order, condition and repair, reasonable wear and tear
excepted, free and clear of all lettings and occupancies and all liens and encumbrances
other than those, if any, created by the City, without any payment or allowance whatsoever
by the City to the Iowa Greyhound Association on account of or for any buildings or
improvements erected or maintained by the City or the Iowa Greyhound Association on
the Leased Premises or for the contents thereof or appurtenance thereto, unless agreed to
in a writing duly executed by both parties.
(2) No holdover is allowed. In the event that the Iowa Greyhound Association or anyone
claiming under it shall continue occupancy of the Leased Premises after the Termination
Date without any agreement in writing between the City and the Iowa Greyhound
Association with respect thereto, such occupancy shall not be deemed to extend or renew
the term of this Lease, but such occupancy shall continue as a tenancy at will, from month
to month, subject to the covenants, provisions and conditions contained in this Lease,
except that the monthly base rent in such case shall be Four Thousand Eight Hundred
Thirty -Three Dollars and Thirty -Three cents ($4,833.33), prorated and payable for the
period of such continued occupancy. The parties further acknowledge and agree that the
Iowa Greyhound Association shall be deemed to be continuing to occupy the Leased
Premises after the Termination Date in the event that any of its personal property or any of
the personal property of any of its vendors, suppliers and/or contract partners (hereinafter
collectively referred to as the "IGA Parties") remains in, on, or attached to the Leased
Premises, including, without limitation.
(3) On or before the Termination Date or the earlier termination of this Lease, the Iowa
Greyhound Association shall remove (or cause to be removed) from the Leased Premises
all of its furniture, furnishings and other personal property, as well as all of the personal
property of the IGA Parties, and the Iowa Greyhound Association shall repair (at its sole
cost and expense) any and all damage to the Leased Premises caused by such removal. In
the event that the Iowa Greyhound Association fails to remove (or cause to be removed)
any such furniture, furnishings or other personal property as required by this Section 23,
the City shall have the right (but not the obligation) to: (a) arrange for the removal, disposal
and/or storage of any one or more of such items at the sole cost and expense of Iowa
Greyhound Association; or (b) deem any one or more of such items to be abandoned by
the Iowa Greyhound Association and/or the IGA Parties, as applicable, in which case such
abandoned item(s) shall be deemed to be property of the City to be disposed of or utilized
by the City in its sole discretion; provided, however, that the City shall have no liability to
the Iowa Greyhound Association or any of the IGA Parties with respect to any action or
inaction by the City or its agents in respect of any furniture, furnishings or other personal
property that the Iowa Greyhound Association has failed to remove (or cause to be
removed) in accordance with this Section 23. If Iowa Greyhound Association fails to
perform its obligations under this Section 23, the City shall have the right (but not the
obligation), in addition to all of the City's other rights and remedies under this Lease and
applicable law, to perform such obligations on the Iowa Greyhound Association's behalf,
and the Iowa Greyhound Association shall promptly reimburse the City for any and all
costs and expenses incurred and/or suffered by the City in connection therewith. In
addition, the Iowa Greyhound Association shall indemnify and hold the City harmless for
Page 3 of 4
any claims made by any of the IGA Parties against the City with respect to, related to and/or
arising in connection with any action taken (or not taken) by the City or any of its agents
pursuant to this Section 23.
(4) The provisions of this Section 23 shall survive the termination or expiration of this
Sublease.
4. CONTINUING EFFECT: Except as amended above all other terms and conditions of the
Lease shall remain in full force and effect, provided, however, to the extent any provisions in the
Lease conflict with this 2nd Amendment, the terms of this 2nd Amendment shall control.
5. APPROVAL CONTINGENCY: This 2nd Amendment is contingent upon the prior
approval of the City of Dubuque; the Iowa Racing and Gaming Commission; and the Iowa
Greyhound Association.
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to
Lease Agreement as of the date set forth herein above.
The City of Dubuque
Roy D. Buol, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk
LESSOR
Page 4 of 4
Iowa Greyhound Association
WE
Brad Boeckenstedt, President
LESSEE
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public
hearing on the 1st day of November, 2021, at 6:30 p.m., in the Historic Federal Building,
350 W. 6t" Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes
to dispose of the City's interest in real property pursuant to the Second Amendment to the
Lease Agreement between City and Iowa Greyhound Association.
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 agenda will be posted the
Friday before the meeting and will contain public input options. The City Council agenda
can be accessed at https://cityofdubuque.novusagenda.com/AgendaPublic/ or by
contacting the City Clerk's Office at 563-589-4100, ctyclerk@cityofdubuque.org.
Written comments regarding the above public hearings may be submitted to the City
Clerk's Office via email at ctyclerk@cityofdubuque.org or by mail to City Clerk's Office,
City Hall, 50 W. 13t" St., Dubuque, IA 52001, before said time of public hearing. At said
time and place of public hearings the City Council will receive any written comments.
Copies of supporting documents for the public hearings 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 with limited English proficiency, vision, hearing, or speech impairments
requiring special assistance should contact the City Clerk's Office at (563) 589-4100, TDD
(563) 690-6678, ctyclerk@cityofdubuque.org 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 18th day of October, 2021.
Adrienne N. Breitfelder, City Clerk