Ice Harbor Urban Renewal District-Amended Development Agreement-Request for ApprovalCITY OF DUBUQUE,IOWA
MEMORANDUM
June 19,2000
The Honorable Mayor and City Council MembersTO:
FROM:Michael C.Van Milligen,City Manager
SUBJECT :Ice Harbor Urban Renewal District
Site Planning will be an important element of the development of the Ice Harbor
Urban Renewal District.All the parties generally have an idea of where the key
elements of development will be located,such as the hotel,water park,and
convention center .However,at this stage it is unclear specifically where the best
place will be to build the Durrant office building.
Durrant has asked for some additional language in the development agreement that
allows them to make their final decision on whether or not to construct the building
based on the results of the site planning process.They also do not think it is clear
in the agreement that it is their choice whether they lease the two acres directly
from the City or they sublease from Platinum Hospitality Group.
I respectfully recommend that the Development Agreement be approved as
amended with the attached replacement page,first it adds the introductory section
to the last sentence before Subsection (a )of Section 3.1 (B),which reads,
"Presuming that the study concludes favorably for the Durrant office building
project,"AND secondly,it adds wording later in Section 3.1 (B)that makes the
change on the option on the land lease as noted in the attachment.
Michael C.Van Milligen
City Manager
MCVM/ksf
Attachment
Barry Lindahl,Corporation Counsel
Tim Moerman,Assistant City Manager
cc :
million and associated proprietary parking which shall be constructed not later than twelve (12)months
after the completion of the convention center and which shall be the location of the home or regional
office of The Durrant Group.Presuming that the study Theconcludes favorably for the Durrant office
building project,the construction of the office and commercial building by The Durrant Group is subject to
the following conditions:
(a)The Developer shall have constructed the hotel complex referred to in Sec.3.1A.
(b)The City shall have constructed the convention center of 100,000 square feet or
more.
(c)The City shall have constructed sufficient parking for the proposed development.
(d)The Durant Group shall have obtained commercially reasonable financing for the
development and construction of the home/regional office.
(e)The City Council determines that the office and commercial building is consistent with
the Master Plan.
Developer shall lease from the City two (2)acres upon substantially the same terms as the Lease for
sublease to the Durrant Group for the home or regional office and proprietary parking as determined by
the Durrant Group unless theGroup.
two (2)acres directly from City upon substantially the same terms as the Lease.
Furthermore,plans shall be submitted by Developer indicating the location of future expansions of the
Minimum Improvements on the Property to provide 150 additional guest rooms,an 18,000 square foot
addition to the water park and additional proprietary parking (the “Phase II Improvements”).Sufficient
land to accommodate the Phase II Improvements shall be part of the initial lease area.The development
of the Phase II Improvements shall not be required unless the following conditions are satisfied:
(a)Developer obtaining commercially reasonable financing for the development and construction
of the Phase II Improvements.
(b)The occupancy average with respect to the hotel portion of the Minimum Improvements
during any consecutive twenty-four (24)month period of operations of the hotel shall be at
least 85%.Commencing the twenty-fifth (25th)month following the date Developer receives
the certificate of completion from the City for the Minimum Improvements as provided in
Section 3.4 below (the “Certificate of Completion Date”),and every month thereafter,
Developer shall make the occupancy figures for the immediately preceding twenty-four (24)
month period available to the City to review.The foregoing obligation to make available the
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million and associated proprietary parking which shall be constructed not later than twelve (12)months
after the completion of the convention center and which shall be the location of the home or regional
office of The Durrant Group.Presuming that the study concludes favorably for the Durrant office building
project,the construction of the office and commercial building by The Durrant Group is subject to the
following conditions:
(a)The Developer shall have constructed the hotel complex referred to in Sec.3.1A.
(b)The City shall have constructed the convention center of 100,000 square feet or
more.
(c)The City shall have constructed sufficient parking for the proposed development.
(d)The Durant Group shall have obtained commercially reasonable financing for the
development and construction of the home/regional office.
(e)The City Council determines that the office and commercial building is consistent with
the Master Plan.
Developer shall lease from the City two (2)acres upon substantially the same terms as the Lease for
sublease to the Durrant Group for the home or regional office and proprietary parking as determined by
the Durrant Group.The Durrant Group at its option,may lease these same two (2)acres directly from
City upon substantially the same terms as the Lease.
Furthermore,plans shall be submitted by Developer indicating the location of future expansions of the
Minimum Improvements on the Property to provide 150 additional guest rooms,an 18,000 square foot
addition to the water park and additional proprietary parking (the “Phase II Improvements”).Sufficient
land to accommodate the Phase II Improvements shall be part of the initial lease area.The development
of the Phase II Improvements shall not be required unless the following conditions are satisfied:
(a)Developer obtaining commercially reasonable financing for the development and construction
of the Phase II Improvements.
(b)The occupancy average with respect to the hotel portion of the Minimum Improvements
during any consecutive twenty-four (24)month period of operations of the hotel shall be at
least 85%.Commencing the twenty-fifth (25th)month following the date Developer receives
the certificate of completion from the City for the Minimum Improvements as provided in
Section 3.4 below (the “Certificate of Completion Date”),and every month thereafter,
Developer shall make the occupancy figures for the immediately preceding twenty-four (24)
month period available to the City to review.The foregoing obligation to make available the
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