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Casino Hotel Parking Agreement Th;B~ ~ck~ MEMORANDUM July 27, 2005 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Dubuque Casino Hotel, LLC Corporation Counsel Barry Lindahl is recommending approval of an assignment of the Parking Use Agreement between DRA, Dubuque Casino Hotel and the City of Dubuque, and an assignment of the Lease Agreement between Dubuque Casino Hotel and the City of Dubuque to Dubuque Bank and Trust as security for a loan to Dubuque Casino Hotel LLC. I concur with the recommendation and respectfully request Mayor and City Council approval. ~ t{~~Jl~ Mi6hael . Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager BAR R Y A. L I N D A H L, ESQ. CORPORATION COUNSEL, CITY OF DUBUQUE MEMO To: Michael C. Van Milligen City Manager DATE: July 21, 2005 RE: Dubuque Casino Hotel, LLC Mike: Dubuque Casino Hotel, LLC is requesting approval of an Assignment of the Parking Use Agreement between DRA, Dubuque Casino Hotel and the City of Dubuque and an Assignment of the Lease Agreement between Dubuque Casino Hotel and the City of Dubuque to Dubuque Bank & Trust as security for a loan that Dubuque Bank & Trust has made to Dubuque Casino Hotel LLC. These assignments are identical to the assignments the City Council approved for Dubuque Racing Association as security for a loan by American Trust & Savings Bank to DRA for the casino expansion. I would recommend that the Assignment of Parking Use Agreement and Assignment of Lease Agreement be submitted to the City Council at its August 1st meeting for consideration. cc: Jeffrey Walters, Esq. (w/out enc.) Brian Kane, Esq. (w/out enc.) Steve Krumpe, Esq. (w/out enc.) Enclosure SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113/ FAX (563) 583-1040/ EMAIL balesq@cityofdubuque.org Prepared by: Jeffrey L. Walters, 2080 Southpark Court, Dubuque, IA 52003 (563) 582-2926 SPACE ABOVE THlS LINE FOR RECORDER IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. Re: A parcel of land containing 43.73 acres, more or less, located on Chaplain Schmitt Memorial Island lying immediately north of the Iowa-Wisconsin Bridge as set forth on the plat attached hereto and made a part hereof and subject to a utility and roadway easement located on and about the southerly property line, a roadway easement located on or about the easterly property line, and a roadway easement on and about the westerly property line (the "Real Estate"). ASSIGNMENT OF PARKING USE AGREEMENT This Assignment of Parking Use Agreement ("Agreement") is effective ,2005, among DUBUQUE RACING ASSOCIATION, LTD., an Iowa non- profit corporation ("ORA"), DUBUQUE CASINO HOTEL, LLC, an Iowa limited liability company, Lessee, ( "Borrower"), CITY OF DUBUQUE, Iowa, an Iowa municipal corporation ("Lessor") and DUBUQUE BANK & TRUST, an Iowa banking corporation, ("Bank"). 1. Recitals. Borrower has entered into a Parking Use Agreement with ORA and Lessor under a Parking Use Agreement dated July 6, 2004, as amended by the First Amendment to Parking Use Agreement dated May 2, 2005, a copy of which is attached as Exhibit "A". The Bank has authorized the making a loan to the Borrower by virtue of a Loan Agreement executed by the Borrower and the Bank of even date CLoan"). The Loan is for the benefit of Borrower insofar as funds from the Loan will be used for the benefit of the business conducted on the leased premises. In consideration of the promises contained in this Agreement, and of the disbursement of part or all of the Loan by Bank, Borrower, with the consent of Lessor and ORA, upon an uncured default under the Loan Agreement, assigns to Bank the Parking Use Agreement referred to above during the remainder of its term, including all extensions and renewals. Upon payment of the loan in full, Bank shall provide to Borrower, ORA and to City in recordable form a cancellation of this Assignment. Page 1 of 5 2. Borrower and Lessor Further Covenant and Agree: 2.1. Borrower is not now in default in the performance of the Parking Use Agreement; Borrower, Lessor and DRA will each perform the covenants and conditions required of it by the Parking Use Agreement for the term of the loan and any extensions or renewals. 2.2. Borrower, Lessor and ORA will not modify or terminate the Parking Use Agreement without the prior written consent of Bank which shall not unreasonably be withheld. 2.3. [Intentionally left blank.] 2.4. If Borrower defaults in the performance of any of its obligations under the Loans, any renewals or extensions, or of any related agreement, then Bank, at its option, may, without notice except as may be required under the Loan Agreement, using such force as may be necessary, enter said leased premises and do anyone or more of the following: (1) Remove all personal property of Borrower that is pledged as collateral for the Loans; (2) Sell such personal property; (3) Transfer and assign the Parking Use Agreement and Borrower's rights in it to parties satisfactory to Bank, Lessor, ORA and the Iowa Racing and Gaming Commission, and upon assignment the obligations of the Parking Use Agreement shall be binding on such transferees. In the event that Bank undertakes the options provided in Subsections (1) or (2), it shall have no obligation other than payment of rent accruing during the period of its possession of the premises. In the event that Bank transfers the Parking Use Agreement as provided in Subsection (3), Bank will cure all defaults in said Parking Use Agreement. 3. Subordination. Lessor and DRA subordinate any lien they have or may have on the personal property of Borrower that is or may be security for the Loans to Bank's liens on Borrower's or DRA property, and to Bank's rights under this Agreement. This subordination shall be effective regardless of whether or not the collateral constitutes fixtures. For the purposes of this Agreement, the term "liens" specifically includes any Landlord's lien under Chapter 570, Code of Iowa, as amended, to which the Lessor or DRA may be entitled. 4 Warranty of Title. Lessor warrants that title to the leased premises is held by it in fee simple subject to a lease with DRA. Lessor and DRA each has full power and authority to enter into this Agreement. 5. Notices. All notices under this Agreement shall be in writing and shall be deemed delivered if delivered in person, if sent by certified mail (postage prepaid, return receipt requested), telegraph or facsimile, as follows: If to Bank: Oubuque Bank & Trust Company 1398 Central Avenue Dubuque, IA 52001 Page 2 of 5 If to Borrower: Oubuque Casino Hotel, LLC CIO Mr. Wayne A. Briggs, President 137Main Street, Suite 400 Dubuque, IA 52001 If to DRA: Dubuque Racing Association, Ltd. Post Office Box 3190 Dubuque, IA 52004-3190 Attn: Bruce Wentworth, General Manager If to Lessor: City of Dubuque City Hall 50 West 13th Street Oubuque, IA 52001 Attn.: Michael C. Van Milligen, City Manager 6. Applicable Law; Severability. This Agreement shall be subject to, construed and enforced in accordance with the laws of the State of Iowa. If any provision of this Agreement is held invalid under applicable Law, such invalidity shall not affect any other provision of this Agreement that can be given effect without the invalid provision, and to this end, the provisions hereof are severable. 7. Binding Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties. Neither Borrower nor Lessor shall assign any of its rights or obligations hereunder without the prior written consent of Bank. 8. Interpretation; Headings. Words and phrases herein shall be interpreted and understood according to the context in which they are used. The headings in this Agreement are intended solely for convenience of reference, and shall be given no effect in the construction or interpretation of this Agreement. 9. Entire Agreement; Counterparts; Remedies Cumulative. This Agreement, including any Exhibits, all of which are incorporated by this reference, and the documents executed and delivered pursuant hereto, constitute the entire agreement between the parties, and may be amended only by a writing signed by each party. All agreements, instruments and documents referred to in this Agreement are by this reference made a part of this Agreement for all purposes. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. The parties shall have, in addition to the rights and remedies provided by this Agreement, all those allowed by all applicable laws, all of which shall be in extension of and not in limitation of those provided hereunder. 10. Waivers. Except as herein expressly provided, no waiver by either party of any breach of this Agreement, or of any warranty or representation hereunder, shall be deemed to be a waiver by the same party of any other breach of any kind or nature (whether preceding or succeeding the breach in question, and whether or not of the same or similar nature). Page 3 of 5 10.1. No acceptance by a party of payment or performance after any such breach shall be deemed to be a waiver of any breach of this Agreement or of any representation or warranty hereunder, whether or not the party knows of the breach when it accepts such payment or performance. 10.2. No failure by a party to exercise any right it may have under this Agreement or under law upon another party's default, and no delay in the exercise of that right, shall prevent it from exercising the right whenever the other party continues to be in default. No such failure or delay shall operate as a waiver of any default or as a modification of the provisions of this Agreement. 11. Attorney's Fees. If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and costs of litigation from the other party. Such fees and costs of litigation may be set by the court in the trial of such action or by the arbitrator, as the case may be, or may be enforced in a separate action brought for that purpose. Such fees and costs of litigation shall be in addition to any other relief which may be awarded. Effective as of the date first written above. City of Dubuque By Terrance M. Duggan, Mayor By Jeanne F. Schneider, City Clerk Dubuque Bank & Trust Company DRA By STATE OF IOWA, DUBUQUE COUNTY) ss: By On this _ day of , 2005. before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared and to me personally known, who, being by me duly sworn, did say that they are the President and Secretary, respectively, of Dubuque Racing Association, Ltd., executing the within and foregoing instrument, that no seal has been procured by the corporation; that said instrument was signed on behalf of the corporation by authority of its Board of Directors; and that as President and as Secretary, Page 4 of 5 acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the corporation, by it and by them voluntarily executed. Notary Public, State of Iowa STATE OF IOWA ) COUNTY OF DUBUQUE ) ss: On this /3 day of d tv '--7 ,2005, before me, a Notary Public in and for the State of Iowa, personally appeared Wayne Briggs, to me personally known, who being by me duly sworn did say that he is the Managing Member of said limited liability company, that no seal has been procured by the said limited liability company and that said instrument was signed on behalf of said limited liability company by authority of its managers and the said Wayne Briggs acknowledged the execution of said instrument to be the voluntary act and deed of said limited liabili omp y, b it voluntarily executed. \ .,/l.~_ $ BAlAN J. KANe . "F ... 1/' - .......12seoa * .. IIfIXMUII&lDNE>>'lRES .-uARV 12.1DI11 STATE OF IOWA, DUBUQUE COUNTY) ss: On this _ day of I 2005, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Terrance M. Duggan and Jeanne F. Schneider, to me personally known, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa, executing the within and foregoing instrument, that no seal has been procured by the City; that said instrument was signed an behalf of the City by authority ofthe City Council; and that Terrance M. Duggan and Jeanne F. Schneider, as Mayor and City Clerk, acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the City, by it and by them voluntarily executed. Notary Public, State of Iowa STATE OF IOWA, DUBUQUE COUNTY) ss: On this _ day of , 2005, before me, the undersigned, a Notary Public in and far the State of Iowa, personally appeared , to me personally known, who, being by me duly sworn, did say that _ is a of Dubuque Bank & Trust Company executing the within and foregoing instrument, that the seal which appears below is the seal of the corporation; that said instrument was signed on behalf of the corporation by authority of its Board of Directors; and that as acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the corporation, by it and by _ voluntarily executed. Notary Public, State of Iowa Page 5 of 5 ~(Q)~W Prepared by: Brian J. Kane, Kane, Norby & Reddick, P.C., 2100 Asbury Rd., Ste. 2 Dubuque, lA 52001563-582-7980 PARKING USE AGREEMENT THIS P ~G USE AGREEMENT ("Agreement") is made and entered into effective the ~ day o~004, by and between the DUBUQUE RACING AS SOCIA nON, LTD, an Iowa nonprofit corporation ("DRA"), and DUBUQUE CASINO HOTEL, L.L.C., an Iowa limited liability company ("DCH") and The City of Dubuque, an Iowa municipal corporation ("CITY"). RECITALS A. CITY and DRA entered into that certain lease dated March 31,2004 with regard to certain real estate (described on Exhibit "A" attached hereto and by this reference made a part hereof), (the "Prior Lease"); . h~ ~ B. CITY and DCH are parties to a lease date~fJlme' v . 2004 (the "Lease") located upon real estate fonnerly leased by DRA pursuant to the Prior Lease. upon which DCH shall develop and construct a hotel, restaurant. and other improvement (the "Project"); and, C. For the purpose oflessening the burden of the City's duties with respect to providing parking areas and parking area maintenance for the Project pursuant to the City-DCH Lease, DRA agrees to enter into this Parking Use Agreement with the City and DCH. D. The parties have entered into this Agreement to provide for parking for the Project. THEREFORE, for good and valuable consideration, the receipt and sufficiency ofwmch is hereb~ acknowledged, the parties agree upon the following mutual terms and conditions: 1. Term of Agreement. The term of this Agreement (the "Term" shall commence on the date thirty (30) days immediately prior to the anticipated date of the issuance of the Certificate of Completion (as defined the Lease), and shall terminate upon the expiration or termination oithe Lease. This Agreement shall be transferable, without further consent, with the Lease. 2. Parking and Lel!al Description. During the Term of this Agreement, the DRA shall provide to DCH sufficient space on the real estate leased by DRA under the Prior Lease such that DCH can construct a surface lot for vehicular parking, sidewalks,landscaping, and lighting for such parking area, in the areas designated Phase I parking and legally described on Exhibit A attached hereto (the "Phase I Parking Area") for the non-exclusive use by DCH, and its guests, vendors, suppliers and employees. The Phase I Parking Area shall include pedestrian access and vehicular access to the Phase I Parking Area from, among other things, the Project. DRA and DCH agree that the Phase I Parking Area shall include a minimum of 400 parking spaces for the benefit of the Phase 1 I Improvements (as defined in the Lease). DRA shall pay to DCH the first $220,000.00 in cost related to construction of the Phase I Parking Area. Such payment shall be made in a manner as to allow the funds to be available to DCH when DCH is required to pay its contractors related to such construction. In the event that the DCH constructs the Phase IT Improvements (as defmed in the Lease), DRA shall provide sufficient space on the real estate leased by DRA under the Prior Lease such that DCH can construct a surface lot for vehicular parking in the areas designated Phase IT parking or as described on Exhibit A (the "Phase IT Parking Area") for the non-exclusive use by DCH and its guests, vendors, suppliers and employees. The Phase II Parking Area shall include pedestrian access and vehicular access to the Phase II Parking Area from, among other things, the Project. DRA and DCH agree that the Phase II Parking Area shall include a minimum of an additional 100 parking spaces for the Phase II Improvements (a minimum of 500 parking spaces combined for both Phase I and Phase IT projects). DCH shall be responsible for all costs associated with construction of the Phase II Parking Area. For purposes of this Agreement, Phase I Parking Area and Phase II Parking Area shall collectively be referred to as the "Parking Area" The parties shall mutually agree to the specifications of construction of the Parking Area. During the term of the Prior Lease or any extension thereof, DRA shall be responsible for all routine day to day custodial maintenance of the Parking Area during the Term of this Agreement, including, without limitation, lighting, sweeping, trash collection, landscape trimming, snow removal and clearing of ice from the Parking Area. DRA shall be responsible, at no cost to DCH, for the replacement, repair and other maintenance associated with the Parking Area, including, without limitation, the repair, replacement and maintenance of lighting, surface potholes, surface reconstruction and restoration, landscape replacements, parking space striping and re-caulking of the parking area. DCH, and its guests, vendors, suppliers and employees, shall at all times have reasonable access to the Parking Area and DRA and/or CITY shall keep the Parking Area reasonably clear at all times in order that DCH, and its guests, vendors, suppliers and employees, may use the Parking Area. DRA shall be responsible for obtaining and maintaining all necessary permits for the construction and operation of the Parking Area, including all necessary permits to allow the collection, retention and discharge of stormwater. Prior to construction of the Parking Area, DRA shall be responsible for security in the Parking Area, DRA and DCH shall meet to discuss and agree on the layout of the Parking Area. The Parking Area and aU streets leading to the Parking Area shall be constructed in a manner to allow heavy truck access. However, in the event of a termination of the Prior Lease for any reason, DCB shall assume and perform for all of DRA's duties and responsibilities as set forth in this paragraph. 3. Pedestrian Ingress/Egress. DRA shall provide a reasonably direct and convenient means of public pedestrian ingress and egress to the Parking Area. Such pedestrian access shall include a connection to the public sidewalk fronting and connecting the Project. Such pedestrian access shall comply with the handicap accessibility standards applicable at the time the Parking Area is constructed including, but not limited to, the Americans with Disabilities Act. 4. Outdoor Storage Prohibited. DCH shall not cause, allow or permit any outdoor 2 storage of any materials, objects or things of any kind, including refuse, trash or garbage, at any time on the Demised Premises. Notwithstanding the foregoing, refuse storage is permissible in an accessory storage enclosure if the City Manager determines that the structure is in character with the principal building and constructed of the same quality permanent materials as the principal building. The accessory structure shall be within close proximity to the principal structure. Where the structure exceeds 200 square feet in area, at least 1/3 of the structures exterior perimeter shall be landscaped with ornamental trees and shrubs. 5. Vehicular IngresslEgress. DRA shall provide a reasonably direct and convenient means of public vehicular ingress and egress between the public streets adjoining the Parking Area and the Parking Area. The vehicular access shall be sufficient to permit automobiles, sports utility vehicles, vans and buses to be driven from the street to the Parking Area and back to the street without being blocked by parked vehicles or other obstructions. DRA shall be responsible for cost, maintenance, and repair of all non-public streets at no cost to neH, for all non-public streets, landscaping and lighting for the Parking Area, such non-public streets, landscaping and lighting shall be consistent with the character of the surrounding area. 6. Hold Over Vehicles. Any unauthorized vehicles using the Parking Area may be removed by DRA at any time by any lawful means. 7. Rental. DCH shall pay $5,000.00 per year to DRA as of the commencement date and each year annually hereunder for the use of the Parking Area pursuant to this Agreement. The parties agree that full and adequate consideration for the obligations undertaken by DRA pursuant to this Agreement has been provided by the obligations undertaken by DCH as Lessee pursuant to the Lease. 8. Relationship Between Parties. It is mutually understood ~d agreed that nothing in this Agreement shall be construed as establishing a relationship oflessor/lessee, principal/agent or co-partners between DRA and DCE and CITY. 9. Reciprocal Covenants. DCH covenants and agrees that the DRA and CITY shall have no responsibility for, or liability arising from, any release of Hazardous Substances (as defmed in the Lease) on or under the Parking Area, which is caused by DCH, or its guests, vendors, suppliers, or employees. CITY agrees that DCH shall not have any responsibility for any Hazardous Substances existing or found on or under the Parking Area (except for Hazardous Substances deposited by DCH or its agents or assigns). There shall be a rebuttable presumption that any Hazardous Substances found on or under the Parking Area were not deposited by DCH. Except for Hazardous Substances released or deposited by neH or its agents or assigns on the Parking Area, CITY shall retain any legal responsibility or liability, subject to available defenses, CITY may have under law for any Hazardous Substances existing, located or found on or under the Parking Area. This retained responsibility and duty includes the duty to assess, remove and remediate any Hazardous Substances on or affecting the Parking Area as ordered by a state or federal agency, 3 subject to the availability of a comfort letter. This provision shall not inure to the benefit of third parties and shall not be interpreted to enlarge any liabilities owed by CITY or to require CITY to absorb any duties, responsibilities or liabilities that it does not already have for Hazardous Substances existing, located or found on or under the Parking Area. To the fullest extent allowed by law, CITY agrees to indemnify DCH for reasonable costs and expenses associated with responding to any legally enforceable order regarding Hazardous Substances from any governmental agency or court with proper jurisdiction to the extent that CITY, after DCB has given reasonable notice of the governmental order to CITY, does not timely and reasonably respond to said inquiry or order and if CITY allows full access to the Parking Area as necessary, as provided herein. CITY's right of appeal and negotiation are not waived by the foregoing and the filing of an appeal or negotiation with the governmental agency are considered timely and reasonable responses. However, CITY agrees to indemnify DCH for any penalties and fines DeB incurs as a result of any such appeal or negotiation. CITY shall minimize any disruption and will not materially or unreasonably restrict or interfere with the use of the Parking Area by DCH or its guests, vendors, suppliers or employees. In the event CITY restricts or interferes with the use of any part of the Parking Area, CITY shall provide DCH, and its guests, vendors, suppliers and employees, with access to reasonably comparable parking within a close proximity ofthe Project for the period of time that the portion of the Parking Area is not available. 10. Right of First Refusal. IfDRA desires to sell, lease, develop, assign or otherwise transfer (collectively referred to herein as a "Transfer") all or any part of the Parking Area and/or any property to be used for Phase n Improvements (as defmed in the Lease) during the term of this agreement, DCH shall have an option and right of first refusal to purchase or lease such property, as the case may be, or any part thereof to be transferred, as provided in this Section 10. IfDRA has received a bona fide offer to purchase or lease such property as described in this Section 10 from a third party which DRA desires to accept, DRA shall deliver to DCH a copy of such offer specifying the name and address of the prospective transferee, the portion of the property hereunder, as the case may be, to be transferred, the proposed purchase price or lease payment and all other important terms of the proposed Transfer, and DRA shall offer to sell, transfer or lease such property, as the case may be, to DCH on the exact terms contained in such bona fide offer. DeB shall, within sixty (60) days after receipt ofa copy of such bona fide offer, by written notice toDRA, elect either to: (a) exercise its rights offirst refusal to purchase or lease, as the case may be; or (b) waive its right offirst refusal to purchase or lease pursuant to such notice with regard to the property covered by this Section 10 proposed to be transferred. If DCH exercises its right of first refusal, DRA shall transfer or lease, as the case may be, such property to DCH within ninety (90) days of the exercise by DCB of this right of first refusal. If DCH waives its right of first refusal in the manner set forth above, DRA shall have the right, for a period of one (l) year after the date of DCH's waiver, to consummate the Transfer upon terms and conditions exactly the same as and no less favorable to DRA than those contained in the bona fide third-party offer. Provided, notwithstanding any waiver by DCH of its right of first refusal, the Transfer of the Property to any third party shall be subject to the terms of this Agreement. If a proposed Transfer is not consummated within the aforementioned one (1) year period following waiver by DCH, the Property 4 covered by this Section 10, as the case may be, shall not thereafter be released from the effect of this Section 10. 11. Remedies. Except as otherwise provided in this Agreement, in the event of any default in or breach of this Agreement, or any of its terms or conditions, by any party, or any successors, such party (or successors) shall, upon written notice from the other party, proceed promptly, and, in any event, within thirty (30) days after receipt of such notice, to cure or remedy such default or breach. In case such action is not taken or not diligently pursued, or default or breach shall not be cured or remedied within a reasonable time, the aggrieved party may institute such proceedings as may be necessary or desirable in its opinion to cure and remedy such default or breach, including, but not limited to, proceedings to compel specific performance by the party in default or breach of its obligations. Notwithstanding anything herein to the contrary, either party may, after the above 30-dayperiod, cure the default of the other party and seek recovery of the cost for such cure from the other party. The prevailing party in any actions brought under this paragraph shall be entitled to recover reasonable attorneys fees and court costs and interest on unpaid sums at the rate of ten percent per annum from the date due. 12. Notices. A notice, demand or other communication under this Agreement by any party to the other party(ies) shall be sufficiently given or delivered ifit is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, (a) In the case ofDRA, is addressed to Dubuque Racing Association, LTD, Attn: Mr. Bruce Wentworth, 1855 Greyhound Park Rd., Dubuque, IA 52001; (b) In the case ofDCH, is addressed to Dubuque Casino Hotel, LLC, Attn: Mr. Wayne A. Briggs, 137 Main S1., Ste. 400, Dubuque, IA 52001; (c) In the case of CITY, is addressed to City of Dubuque, Iowa, Attn: Mr. Michael C. Van Milligen, 13th S1. & Central Ave., Dubuque, IA 52001; or to such other person or address with respect to any party as that party may from time-to-time designate by notice to the other party as provided in this Section. Any notice delivered hereunder shall be deemed delivered upon the earlier of the actual receipt or two (2) business days after posting. 13. Governing Law. It is agreed that this Agreement shall be governed by, construed and enforced in accordance with the laws of the State ofIowa. 14. Amendments. Any amendment or modification of this Agreement shall be binding only if evidenced in a writing signed by an authorized representative of each party. 15. Parties Bound. This Agreement (i) shall follow and run with the Lease between 5 CITY and DCH, and (ii) shall be transferable with the Lease, and (iii) shall remain in effect for the length of the Lease (as defined therein) and the extension referred to in Par. 1.1 of the Lease. This Agreement shall be binding on and shall inure to the benefit of the parties and their respective successors in interest and assigns. 16. City Bound Upon Termination of Prior Lease. In the event the Prior Lease terminates for any reason, prior to the end of the Term (or any extensions or renewals) provided herein, CITY agrees that, except for the maintenance obligations described in Par. 2, it will continue to be bound by the terms of this Parking Use Agreement and shall succeed to the rights and obligations ofDRA herein. In the event that upon termination of the Prior Lease, City enters into a subsequent lease of Dubuque Greyhound Park & Casino, City shall require that the lessee in such lease shall be responsible for the maintenance obligations described in Par. 2 for the term of such lease. 17. Limitation on City's Financial Obligations. Nothwithstanding any other provision in this Agreement, the City shall have no fmancial obligation of any kind to DCH for any improvements to the Demised Premises, the parking areas or otherwise. 18. Financing Condition. This Agreement is subject to DCH obtaining financing from or through a local fmancial institution on prevailing terms for no less than eighty percent (80%) of the cost of the Project (as depicted in the Lease). . IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed effective the day first above written. DUBUQUE RACING ASSOCIATION, L TD 4-t'---~ ~~ ~~J- By Its authonzed representatIve . CITY OF DUBUQUE, IOWA 6 CITY.-GF DUBUQUE, lOW A ~ ~ /I ,!/ ~-:7'L/-7 ~h-/./~ / y its City Clerk [NOTARY BLOCKS TO BE ADDED ON PARKING USE AGREEMENT] 7 State of Iowa ) ) ss: County of Dubuque) On this 1'.k~ day of tM , 20Q4, before me, a Notary Public in and for said state, personally aPpeared L2,-e:- <: .~ , to me known to be the person named in and who executed the foregoing instrument, and acknowledged that he executed the same as h~S volu~ta act and. deed. ._/.~ "..'Oot 4'" vllSAN ~.. WINTER / 1 ~"~4<".,. Cor,,:I~jSION NO. 183274 . ': ~:- AH .., .';-W.JiSSION EXPIRES . 10";;::- 2/14/05 A: ~ otary PUDlic in the State 'of Iowa State of Iowa ) ) ss: County of Dubuque) On this 1?t"'L day of at-A/~ ,2004, before me, a Notary Public in and for said state, personally appecired // hZ U /../.c./?/ ~~ "7 to me known to be the person named in and who executed thifforegoing instr nt, and acknowledged that he executed the same as his voluntary act and deed. State of Iowa ) ) ss: County of Dubuque ) On this c; ..-'-L. day of 1 ~ . ;:y;?i1-/ ,before me, the undersigned, a Notary Publfe"in an or the State of Iowa, personally appeared Terrance M. Duggan and Jeanne F. Schneider, to me personally known, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa; a municipal corporation; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on beha~ 9f the corporation, by authority of its City Council ~ a passed by ResolutJono- ??~t1 L of the City Council on the (/ ~~ day of ~ 1 .?I?1.Y~ , and Terrance M. Duggan and Jeanne F. Schneider, ac wledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. .......IH e ~ ~;ut.MI M. WINTER . c ,-:!"- "'", '..r..p'...,."....! ;." 1"3.274 \: b~ ~.~. :'.": ~-.j.~:,~~:'.~:~~. ~~Io..'. f;; ~ /.'": ....'... ",.:;~,,-,,'J EXPIRES low~ f 2./14/05 EXHIBIT A PARKING AREAS See attached. ., F:\WPDOCSIMiu)'IDOCSI08Q Rlcins Assn - D8Q Cuino Hotel ParltinS U.. A_onl B1K Final, wpd 8 "" '-. t1\, 'r'- ~ ~ " ........ \ . . . I / /------ / I i .. j / / ! ;' I / i ;' ! / / i I I ! , i , I I....j / i / i F .I 1/ I If / 1 { I I .1 ~ !: ~ :.(, ~ :t "... " N .k4 -..----. ;' ~'~/'" .~.,.. Prepared by: Brian J. Kane, KANE, NORBY & REDDICK, P.c., 2]00 Asbury Rd., Ste. 2, Dubuque, IA 52001 563-582-7980 FIRST AMENDMENT TO PARKING USE AGREEMENT This First Amendment to Parking Use Agreement ("Amendment") is made and entered into effective this 2nd day of May , 2005, by and between DUBUQUE RACING ASSOCIATION , LTD., an Iowa nonprofit corporation ("DRA"), and DUBUQUE CASINO HOTEL, L.L.C., an Iowa limited liability company ("DCH"), and THE CITY OF DUBUQUE, an Iowa municipal corporation ("CITY"). REelT ALS (A) DRA, DCH, and CITY entered into that certain Parking Use Agreement effective July 6,2004 (the "Agreement") which Agreement, among other things, granted DCH use of certain real estate leased by DRA from CITY for the construction of a surface lot for vehicular parking, sidewalks, landscaping, and lighting for such parking area, with such construction to be in two phases, Phase I and Phase n, as provided under the Agreement; and, (B) Exhibit "A" to the Agreement showed the original Phase I and Phase II parking areas. Since the date of the Agreement (i.e., July 6, 2004), there has been significant engineering with regard to the subject matter of the Agreement, and the parties recognize that certain changes or modifications to the Agreement should be made, which the parties desire to reduce to writing, all pursuant to Section 14 of the Agreement. THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree upon the following mutual terms and conditions: 1. DCH shall construct a surface lot for vehicular parking, sidewalks, landscaping, and lighting for the parking areas designated as Phase I and Phase n on the attached Exhibit "AA," which exhibit replaces Exhibit "A" attached to the Agreement. The parties acknowledge that Exhibit "AA" contemplates 450 parking spaces, more or less, as opposed to the 500 parking spaces contemplated by Exhibit "A" to the Agreement, because of engineering, internal roadways, landscaping islands, etc. In consideration of the construction at this time by DCH with respect to Exhibit "AA," DRA agrees to pay DCH $76,397.50 on or before June 1,2005, or when the parking lot and other aforesaid improvements thereto are substantially finished, whichever first occurs. DCH agrees to repay to DRA $76,397.50 upon the earlier to happen of the following: (a) IfDCH sells its hotel and restaurant; or, (b) Substantial completion ofthe expansion ofthe hotel as stated in Section 2 of the Agreement; or, (c) On June 1,2010. Payment ofthe foregoing amount, without interest, shall be made within thirty (30) days of any of the foregoing events. 2. DRA agrees to pay DCH $220,000.00, pursuant to Section 2 of the Agreement, by NA ,2005. 3. In all other respects, the parties affirm and ratify the Agreement, except as specifically amended by this Amendment. IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed effective the day first above written. DUBUQUE RACING ASSOCIATION, LTD. .6~ By its authorized representative DUBUQUE CASINO HOTEL, L.L.C. F:\WPDOCS\Mrssy\DOCS\DBQ Racing Assn - Dubuque Casino Ho\elln Amendment to Parking Use Agrcemcnt.wpd STATE OF IOWA ) COUNTY OF DUBUQUE ) ss: This instrument was acknowledged before me on the /'1 day of AI'/''' / 2005, by r:~z.#.. KATHRYN MALONE ~ ~.!I! ~ Commission Hum ar 11 486 . 10';;:- My Comm. Ellp. ~ @d/onv NOTARY LIC IN AND FOR THE STATE OF IOWA STATE OF IOWA DUBUQUE COUNTY Ji This instrument was acknowledged before me on the Cr day of ~/L 2005, by Wayne A. Briggs, as President of Dubuque Casino Hotel, L.L.c. ) ) ss: ~ ..... BRIAN J. KANE QlmII1ISlIIOll Nun1b8r 1258113 t6f~~ STATE OF IOWA ) DUBUQUE COUNTY ) ss: On thi~ day of '/ ,2005, before me, the undersigned, a Notary Public in and for said State, persona lyap eared Terrance M. Duggan, to me personally known, who being by me duly sworn, did say that he is the Mayor of The City of Dubuque; that no seal has been procured by the said corporation that said instrument was signed on behalf of said corporation by authority of its Board of Directors; and that the said Mayor, as such officer, acknowledged the execution of said instrument to be the voluntary act and de f said corpora ion, by it and by him voluntarily executed. t-1l..'Al.... SUSAN M. WINTER ~ .: ~ COMMISSION NO.183274 I -' MY COMMISSION EXPIRES ow~ Z/1~/08 EXHIBIT "AA" See attached drawing. . . , '. , \ ~ ~ ~ ..... ''-1' '~ "'\ PI t-=\ ~ ~ ~ ~ "1': , "< ~ '\' "A" EXHIBIT _.......'~:..-.-..w....... " '<~~::, ~\...\ "', .\,....,. J) II of , i7" ~- \ f ; I I ! / f I I ! i i I I I I I ! I I I I I / / I I I i I I I / I -. EXBtBIT "Alt." . J .......... J lJ J , , ~ , \I ~. 'I 1111111 P I I I " · - ~ . H . .. ,I / , / . . -----J il~:lli~,:~pll ,lI,lUllI ~I DUBUQUE CASINO ,. -~H~i'81 ~ HOTEL LLC. - BID PACKAGE #2 Vl ,