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Spirit of Dbq Lease AmendmentMEMORANDUM December 8, 2003 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Spirit of Dubuque (Dubuque River Rides, Inc.) Lease Amendment Corporation Counsel Barry Lindahl is recommending approval of an amendment to the Dubuque River Rides, Inc. Lease. Dubuque River Rides, Inc. leases approximately 340 feet of water frontage in the Ice Harbor from the City. The current lease limits the use of the premises to providing riverboat rides, serving meals and/or beverages (catering) on riverboats, and offices and training. Walt and Nancy Webster have requested that the lease be amended to allow for a restaurant with bar and a gift shop on a new barge they have brought into the Ice Harbor. The Amendment to the Lease Agreement allows them to conduct those new uses. I concur with the recommendation and respectfully request Mayor and City Council approval. M~chael C Van Milligen " > MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Barry A. Lindahl, Esq. Corporation Counsel Suite 330. kqarbor View Place 300 Main Street Dubuque. Iowa 52001-6944 ~563~ 583-4113 office t563) 583-1040 fax balesq@cityofdubuque.org December 4, 2003 Mr. Michael C. Van Milligen, City Manager City Hall - City Manager's Office 50 West 13th Street Dubuque, IA 52001 RE: Spirit of Dubuque (Dubuque River Rides, Inc.) Lease Amendment Dear Mike: The City has been negotiating a lease amendment with Walt and Nancy Webster, representing Dubuque River Rides, Inc., the company that owns the Spirit of Dubuque. The discussions have recently concluded in an agreement resulting in the attached Amendment to Lease Agreement. Dubuque River Rides, Inc. leases approximately 340 feet of water frontage in the Ice Harbor from the City. The current lease limits the use of the premises to providing riverboat rides, serving meals and/or beverages (catering) on riverboats, and offices and training. The Websters have requested that the lease be amended to allow for a restaurant with bar and a gift shop on a new barge they have brought into the Ice Harbor. The Amendment to Lease Agreement allows them to conduct those new uses. Dubuque River Rides, Inc. also agrees, as a part of the amendment, that it will not object to the construction of the proposed transient boat docks in the Ice Harbor. The attached aedal photographs show the current location of Dubuque River Rides Barges (Phase II Plan) and a proposed plan for a relocation of the barges (Phase III Plan). The restaurant with bar and gift shop will be located on the 96' x 26' barge under either configuration. The Amendment to the Lease Agreement also provides that the Websters are limited to either of these two configurations of barges without further approval from the City. I recommend that the amendment be submitted to the City Council for its conSideration. B~rry A. Lindahl, Esq. Corporation Counsel BAL:tls Attachment Pauline Joyce, Administrative Services Manager Cindy Steinhauser, Assistant City Manager Thomas S. Collins Esq. AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DUBUQUE RIVER RIDES, INC. Whereas, on February 4, 1991, the City of Dubuque, Iowa (City} and Roberts Rivers Rides, Inc. (Roberts) entered into a Lease (the Lease) for approximately 340 feet of water frontage in the Ice Harbor in the City of Dubuque iowa; and Whereas Roberts assigned its interest in the Lease to Dubuque River Rides, Inc. fka The Spirit of Dubuque, Inc. (Spirit); and Whereas, City and Spirit now desire to amend the Lease in certain respects as set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES THAT THE LEASE IS AMENDED AS FOLLOWS: 1. ARTICLE V is amended by adding at the end of the Article the following: Lessee acknowledges that Lessor intends to make improvements to the storm sewer shown on Exhibit A attached hereto. Lessee has requested permission from Lessor and Lessor hereby grants permission to Lessee to construct a loading platform over or near the storm sewer, subject to Lessor's approval of plans for the platform, which plans shall be submitted by Lessee to Lessor in advance of construction of the platform. Lessee agrees that upon request of Lessor, Lessee shall at its sole cost and at no cost to Lessor, move or relocate the platform if Lessor determines that such move or relocation is necessary for any construction, reconstruction, repair or maintenance of the storm sewer. 2. ARTICLE XVIII is amended to read as follows: ARTICLE XVlll. Use of Premises. It is understood by Lessee that Lessor hereby leases said premises for the specific use of said premises to provide for riverboat ddes, for serving of meals and/or beverages on riverboats, offices and training, a restaurant with bar on the barge shown on Exhibit A and Exhibit B, and a gift shop on the barge shown on Exhibit A and Exhibit B. Lessee has submitted to Lessor a Site Plan (5-30-03 Phase 2), attached hereto as Exhibit A, that shows Lessee's current location of barges on the Leased Premises and such Site Plan is approved. Lessee has also submitted a Site Plan (5-30-03 Phase 3), attached hereto as Exhibit B, that shows Lessee's proposed alternative location for its barges on the Leased Premises and such Site Plan is approved. Lessee agrees that it shall not locate its barges in any locations other than that shown on Exhibit A or Exhibit B without the prior written approval of Lessor. If Lessee locates its barges as shown on Exhibit B, Lessee shall at such time as the barges are so located paint the office barge white. 3. ARTICLE XV[ is amended by adding at the end thereof the following: Lessee acknowledges that Lessor intends to construct in the Ice Harbor transient boat docks, which construction may require the approval of other governmental agencies. Lessee agrees that it will not object, directly or indirectly, to any proposal by Lessor for the construction of transient boat docks so long as the transient boat docks are not constructed on the shore of the Leased Premises. If Lessee breaches this prows~on of the Lease, Lessee agrees that Par. 2 of this Amendment to Lease Agreement shall be automatically null and void. 4. All other provisions of the Lease shall remain in full force and effect. Dated this day of ,2003. CITY OF DUBUQUE, IOWA By Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk DUBUQUE RIVER RIDES, INC. fka THE SPIRIT OF DUBUQUE, INC. By Walt Webster, President Lessee has submitted to Lessor a Site Plan (5-30-03 Phase 2), attached hereto as Exhibit A, that shows Lessee's current location of barges on the Leased Premises and such Site Plan is approved. Lessee has also submitted a Site Plan (5-30-03 Phase 3), attached hereto as Exhibit B, that shows Lessee's proposed alternative location for its barges on the Leased Premises and such Site Plan is approved. Lessee agrees that it shall not locate its barges in any locations other than that shown on Exhibit A or Exhibit B without the prior written approval of Lessor. If Lessee locates its barges as shown on Exhibit B, Lessee shall at such time as the barges are so located paint the office barge white. 3. ARTICLE XVI is amended by adding at the end thereof the following: Lessee acknowledges that Lessor intends to construct in the Ice Harbor transient boat docks, which construction may require the approval of other governmental agencies. Lessee agrees that it will not object, directly or indirectly, to any proposal by Lessor for the construction of transient boat docks so long as the transient boat docks are not constructed on the shore of the Leased Premises. If Lessee breaches this provision of the Lease, Lessee agrees that Par. 2 of this Amendment to Lease Agreement shall be automatically null and void. 4. All other provisions of the Lease shall remain in full force and effect. Dated this 15thday of December , 2003. CITY OF 3471QUE, IOWA By Terra r e M. Duggan, Mayo Attes#1 ? %'/Zrz71 Jeanne F. Schneider, City Clerk DUBUQUE RIVER RIDES, INC. fka THE SPIRIT OF DUBUQUE, INC. By , .- Nancy V.. 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